JKX Oil & Gas Ltd., Guildford, U.K., confirmed it has begun oil production from Ignatovskoye field in the Poltava area. Ignatovskoye is one of three oil fields known collectively as the Novo-Nikolaevskoye complex.
First production originally was expected last November, but David Robson, managing director of JKX, said breakdowns in locally made equipment forced a delay in start-up while imported equipment was moved in.
The Novo-Nikolaevskoye complex is being developed by JKX operating under the Poltava Petroleum Co. joint venture involving Ukrainian state partners (OGJ, Apr. 11, 1994, p. 107).
Robson said the three fields are estimated to hold 60 million bbl of liquids and 1 tcf of gas.
Initial oil production is to be sold to the Kremenchuk refinery, 50 km away, but JKX wants to secure a longer term oil sales contract.
Oil is currently exported by truck and rail. A 4 km link to the oil transportation grid is an option for future exports. Gas will move through a link to the nearby Kiev-Kharkov gas pipeline.
Peak production from the complex is expected to reach 20,000 b/d of oil and 200 MMcfd of gas. Further development drilling in the fields is to begin this summer, with a view to increasing production during 2 years.
Meanwhile, JKX is conducting other operations in the southwestern former Soviet Union. Operations lie off Ukraine, onshore and offshore Dagestan, and onshore and offshore Georgia.
DAGESTAN
In Dagestan, JKX is involved in a 5050 venture with Dagestan joint Stock Co. to redevelop small onshore fields abandoned 25 years ago "in the rush to Siberia."
JKX estimates six fields hold combined reserves of 5 million bbl of oil, thought to be mainly in Achi-Su and Selli fields.
Achi-Su field is producing small amounts of oil. Here JKX is applying Russian technology for test production because field economics do not justify bringing in a western rig for redevelopment.
JKX is negotiating for enough additional acreage to allow use of a western rig, with the intention of building total production from the area to about 2,000 b/d. The company won a Sutay Kutan exploration license in September 1993.
Off Dagestan in the Caspian Sea, JKX is negotiating a production sharing contract with the Russian government for a venture owned 30.5% by JKX, 30% by state firm Dagneft, and 39.5% by Russian state company Rosneft. The group was awarded a tender in July 1993 to develop Inchke-More offshore field and explore a 6,300 sq km block on which the field lies.
JKX as operator is trying to firm up development plans for Inchke-More, which has had reserves estimates of 20-60 million bbl of oil.
A two platform development is envisaged for the long term, but JKX aims to have production from the field starting in late 1995 or early 1996 from three wells.
Early production may involve a converted jack up rig, a production barge and land rig, or a lightweight platform. A feasibility study is expected to be complete in March.
OFF UKRAINE
JKX is a 45% partner with state production concern Chernomorneftegas (55%) in Crimean Petroleum Co., which secured the Delphin license off Ukraine. Awarded in October 1993, the 4,000 sq km Delphin block is the first exploration and production license issued for the Ukrainian Black Sea.
The joint venture acquired seismic data early in 1994.
The 1 Desant wildcat was drilled on the block in the mid-1980s by the Ukrainians. Water at the drillsite is 7580 m deep.
The well was said to have found a reservoir that flowed water and traces of oil. But JKX reckons the block holds five Cretaceous structures, of which the Delphin prospect is best defined. Robson said each of the five structures appears capable of holding 300-500 million bbl of oil.
JKX expects to spud a well on the Delphin prospect in June and is looking for a rig.
Diamond Offshore's Ocean Liberator semisubmersible rig is drilling for Enterprise Oil plc, London, nearby in the Black Sea off Romania. Smit International, Rotterdam, is providing anchor handling, towage, and support services.
Robson said, "Because it is the only western rig in the Black Sea, contract rates are high, so we are examining bringing a second rig to the Black Sea."
Enterprise spudded the 1 Rapsodia well on Block XV last Nov. 6, becoming the first western company to drill off Romania. This well is expected to be complete soon, after which the rig will drill the 1 Doina on the same block.
Texaco Europe was first to use Ocean Liberator in the Black Sea, spudding a wildcat off Bulgaria in June 1993 (OGJ, May 17, 1993, p. 20).
JKX is obliged to spud the Delphin well by Oct. 1. Another well must be drilled and further seismic data acquired within 18 months of Oct. 1.
"We believe Delphin is a large prospect," Robson said. "We expect production of up to 100,000 b/d if drilling is successful. The source rocks are similar to Piper sandstone in the North Sea."
Robson said the first well, if successful, will be suspended as a producer. The second would then be drilled, also on the Delphin prospect, and a Ukrainian jack up rig converted to a production unit.
JKX had hoped to convert the Sivash jack up for the Delphin production role. The rig is currently drilling for Chernomorneftegas, but JKX believes it is not likely to be made available.
JKX aims to have two wells on production by end of the first quarter 1996 at a combined rate of about 10,000 b/d, after which development drilling would be continued.
JKX sees Delphin development ultimately involving two platforms, with offshore loading of oil into a storage tanker for export. Gas would move by pipeline 60 km to Stormovoye field, where there is a gas pipeline to shore.
Gas processing facilities in Stormovoye would have to be upgraded for Delphin development, Robson said.
GEORGIA
In Georgia, JKX is involved with state company Georgian Oil in a 50-50 venture known as Georgian British Oil Co. The venture holds licenses for exploration and development of the Kartli depression near Tbilisi and a West Georgian onshore and offshore area around Poti. Setting up the venture brought JKX three small onshore fields with combined production of less than 100 b/d.
JKX at first will focus on development of the Shromi Subani prospect southeast of Poti. This prospect is near Supsa field, which Robson said produced first oil more than 100 years ago.
JKX moved a western rig into the Shromi Subani area in December and intends to spud the first of three wildcats at the end of this month. Twelve wells are envisaged for development of the field.
Robson said the Shromi Subani reservoir holds eight sandstone strata, each 5-50 m thick. Initially, JKX was told reserves were about 35 million bbl of oil, but Robson said seismic data showed they could be much higher.
Off Georgia JKX has just acquired seismic data collected by the Russians in the early 1990s. More will be bought later this year, after which JKX aims to drill its first well off Georgia early next year.
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