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Vostochny Makarovskoye Gas Field Well Test

Source: www.gulfoilandgas.com 8/29/2013, Location: Asia

Volga Gas plc, the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to provide an update following the completion of a production test on the VM#1 production well on its Vostochny Makarovskoye (VM) gas/condensate field.

A workover has recently been completed on the VM#1 well, perforating 2,608-2,635 meters (the previously perforated interval remains at 2,695-2,645 meters). The interval was also selectively acid treated. Following these successful workover operations, production tests on the well achieved higher than expected flow rates.

On the first test, the well produced 224,000 m3/day of gas and 103 m3/day of condensate on a 10 mm choke (compared with 160,000 m3and 68 m3 respectively prior to the workover on a 10 mm choke). The drawdown was only 1.18 atm (compared to 33.7 atm prior to the workover). On the second test, the well produced 274,000 m3/day of gas and 126 m3/day of condensate on a 12 mm choke with only 1.73 atm drawdown. Well head pressure was 156/172 atm.

Management believes that the well will be capable of producing approximately 300,000 m3/day of gas and 140 m3/day of condensate (approximately 2,647 barrels of oil equivalent per day) with drawdown less than 2 atm. The well is producing directly to the Dobrinskoye gas processing plant together with wells from Dobrinskoye field although this is at reduced rates due to current plant capacity limitations.

Mikhail Ivanov, Chief Executive of Volga Gas, commented:
"We are pleased to have increased the potential well rate on the VM#1 well with this workover. Management now estimates that the sustainable production capacity from the five existing wells on the VM and Dobrinskoye fields currently exceeds 560,000 cubic metres per day.

"We are close to completing the latter stages of the upgrade to our gas processing plant and hope to achieve permitting for running the plant at a planned maximum capacity of up to one million cubic metres per day. Further development drilling on the VM field will be planned to maximize capacity utilization and we are preparing documentation in order to be able to drill wells VM#3 and #5 in 2014."

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