Transmeridian Exploration Inc., Houston, secured a $30 million credit line from Turan Alem Bank to develop its South Alibek field in the eastern PreCaspian basin.
Transmeridian will use the funds to drill 7 wells, install a central production facility, build a 70-km pipeline to the Emba rail terminal, and refurbish the terminal.
The company planned to spud the SA-2 well and test two new intervals in the SA-1 well in early July. With two drilling rigs and one completion rig, Transmeridian hopes to have completed three wells by yearend 2003 and continuous drilling through 2004.
Transmeridian's proved reserves at yearend 2002 were 17.1 million bbl in South Alibek, separated from giant Alibekmola field by a fault system (OGJ Online, Jan. 24, 2003). South Alibek, which contains 36-44° gravity oil with 0.8% sulfur content, is on a 14,111-acre concession.
The SA-1 well, drilled to TD 12,435 ft, cut an estimated 531 ft of net oil pay in the KTII and KTI carbonates. The first of four reservoir zones stabilized at 570 b/d of oil on a 12-mm choke with 290 psi flowing tubing pressure.
Upon retirement of $15 million of an original $20 million debt facility with the same bank, expected to close shortly, KSP, a Kazakhstan investment group, will hold a 50% equity interest in Caspi Neft TME, Transmeridian's operating subsidiary which owns title to South Alibek field.
