Zenith Energy Ltd., the international oil & gas production company operating onshore in Azerbaijan, is pleased to provide an update on drilling results at well C-37 in the Jafarli oilfield.
The Company can confirm that continued flow testing of the well recorded a production rate of approximately 285 barrels of oil per day, adding significant uplift to Zenith's total in country production figure.
Yearly revenue of approximately US$5,500,000 is expected to be generated from C-37, and a stabilised flow rate of 285 represents a 114% increase in the Company's daily oil production.
Further stimulation of the well, which may include swabbing operations as well as the performance of nitrogen stimulation, may further increase the rate of production. The Company will update the market in due course regarding these operations.
C-30 Drilling Operations
Mobilisation of Zenith's 1,200hp drilling rig to the C-30 well location is expected to take place before the end of October 2019.
Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
"We are pleased with the success we have achieved at well C-37. The additional production, and associated net cash flow, is extremely positive and indicates that we are progressing with our strategy of materially increasing our oil production in Azerbaijan. I look forward to updating investors in due course regarding the mobilisation of our drilling rig to the C-30 well location."
Jafarli is the smallest of Zenith’s three fields and is located 7 kilometers south-east of the town of Zardab.
Gravimetric and seismic exploration surveys began as early as 1949 with deep exploration drilling taking place in 1982.
Like the Muradkhanli field, the Eocene sediments, as well as the carbonate and effusive formations found in the Jafarli field present considerable potential for oil reserves.
Similarly, the lithology of the Upper Cretaceous sediment in the Jafali field is similar to that found in the Muradkhanli field. The Eocene sediments, as well as the carbonate and effusive formations found in the Jafarli field, hold prospects for significant quantities of recoverable oil.