Max Petroleum, an oil and gas company focused on Kazakhstan, has completed drilling of an appraisal well in Sagiz West Field.
The SAGW-10 appraisal well has reached a depth of 1,400 metres with electric logs indicating 16 metres of net oil pay over a 24 metre gross interval in the Triassic Formation at vertical depths between 1,225 and 1,249 metres. Reservoir quality is very good with porosities ranging from 15% to 27%. The Company is setting production casing in the well and will begin testing SAGW-10 as soon as practicable.
The Zhanros ZJ-30 rig will next move to drill the SAGW-13 well which is designed to extend the southern limit of the field, one of two wells remaining in the current appraisal programme at Sagiz West.
The Sagiz West field is a Triassic discovery made in Block E in September 2011. The Group has drilled four wells in the field to date and is planning another ten appraisal wells over the next year, commencing in August 2013.
The SAGW-4 well in the Sagiz West field was testing a Triassic reservoir from depths ranging between 1,251 and 1,257 metres, producing at an initial rate of approximately 70 barrels of oil per day (“bopd”) with a 16% water cut, according to the company’s latest operations update. Although porosities in this well are reasonably good, the permeability is not as high as seen in other reservoirs in the field making this zone a good candidate for hydraulic fracturing, a stimulation technique that is used routinely in these types of reservoirs around the world. The other more permeable reservoirs found in the field to date will not require stimulation. The Group anticipates that use of hydraulic fracturing may generate up to a five fold increase in production at a cost of approximately US$300,000 per well. The production data from this well will be used to help evaluate and design a stimulation programme for this reservoir across the field. Additionally, gas caps have been found in the SAGW-4 and SAGW-1 wells drilled on the crest of the structure.
The combined results of the SAGW-4 well and the current interpretation of the new 3D seismic survey confirm productive reservoirs in a central fault block which is estimated to have OOIP in a range between 35 and 48 mmbo. The outer flanks of the Sagiz West structure beyond this central fault block are still considered prospective, but are not included in this revised OOIP figure and will need to be tested by future drilling. Recoveries from the central fault block area are expected to be in the range of 20-30% with an expected recovery from this part of the Sagiz West field of approximately seven to 14 mmbo. Final results of the 3D evaluation and further drilling may increase this estimate in the future. RSC estimate Sagiz West has 2P reserves of 2.5 mmbo at 31 March 2013. However this does not take into consideration the latest 3D seismic survey or the drilling of the SAGW-4 well as both occurred subsequent to the year-end.
The SAGW-5 and SAGW-6 appraisal wells subsequently found respectively 16 and 30 metres of net pay, and further proved up the field prior to 30 September 2013 so that the results will be included in the updated reserves report as of that date. The SAGW-5 well has also tested a Triassic reservoir between 1,324 and 1,330 metres measured depth at various choke sizes between 100 and 240 barrels of oil per day, and then flowed at a stabilised rate of 110 barrels of oil per day on a 10/64” choke. A further eight appraisal wells are planned to be completed by 31 March 2014.
The Group expects to move Sagiz West into TPP in 2014 and FFD in 2016. Long-term plans are for up to 25 wells to be drilled in the field, including 20 producing wells and five injection wells. Development of the field will include both water injection for pressure maintenance in the reservoirs, as well as gas production and export. Initial production will be trucked to Zhana Makat, but development plans include an oil pipeline to be built to the Makat terminal and a gas pipeline to Zhana Makat. Construction of the pipelines and production facilities will take place in 2014 and 2015, with Sagiz West ultimately serving as a hub for production from other fields, including construction of a gathering system to move the future production from Baichonas West and Eskene North fields through Sagiz West onto market via the facilities at Zhana Makat.
