By OGJ editors
HOUSTON, June 29 -- CanArgo Energy Corp., Tbilisi, Georgia Republic, said its Ninotsminda Oil Co. Ltd. unit signed a contract to supply gas from Ninotsminda field to state-owned Georgian Gas Transportation Co.
Georgian Gas will deliver the gas to the state-owned Gardabani gas-fired thermal power plant and will repair the 25-mile pipeline from the field to the plant. Deliveries will be seasonal, generally October to May.
Deliveries of 7 MMscfd initially are to grow as Georgian Oil and CanArgo rework wells in the field. The horizontal N22H and N100H2 wells produce gas, the latter having tested at 13 MMcfd and 301 b/d of condensate on a 63/64-in. choke.
The ability to sell gas in Georgia and the memorandum of understanding concluded with the Ministry of Energy in March 2006 provide comfort to move ahead to appraise the potentially large Kumisi gas prospect later this year, CanArgo said.
Meanwhile, CanArgo said its 100% owned Tethys Petroleum Investments Ltd. subsidiary will seek a separate market listing to raise funds for its activities in Kazakhstan. CanArgo will retain a minority interest.
Funds raised will be used to develop Kyzyloi gas field and further explore and develop the Akkulka and Greater Akkulka areas. Gas flow of 22 MMcfd is to start from Kyzyloi into the Bukhara-Urals gas trunkline in the first quarter of 2007.