A British producer has returned Ninotsminda oil field in East Georgia to production and started a well workover program there.
Operations by JKX Oil & Gas plc of Guildford, U.K, are under way in Ninotsminda field, 40 km east of Tbilisi. The field was shut in for 2-3 years due to a lack of spare parts and supplies and because of Georgia's political unrest at the time.
The field has 14 wells, which have produced 3 million bbl of 41 gravity oil. Oil moved to a large processing and storage facility at Sartichala and from there to a rail loading terminal at Gatchiana.
From the loading terminal, Ninotsminda oil moved by rail to Black Sea ports for export. JKX plans to sell its first cargo of oil this month to a Black Sea purchaser.
David Robson, chief executive officer and managing director of JKX, said production has been started again and stands at 700 b/d. The company has begun a 10 well workover program intended to raise production to 3,000 b/d of oil by the third quarter.
Further development
JKX has asked the European Bank for Reconstruction & Development for funding to develop Ninotsminda further. Robson reckons as much as $100 million will be required for additional development.
"After midyear we hope to begin further development drilling," Robson said. "We are looking at two options: 15-20 vertical wells or, more likely, a smaller number of high angle wells with horizontal sections. We don't know how many extended reach wells will be needed. That will depend on data obtained from production."
JKX estimates Ninotsminda's remaining reserves at 100 million bbl of oil and 200 bcf of gas.
Ninotsminda is the first producing field to operate under a production sharing agreement (PSA) between the Georgian government and a western company.
JKX holds a 51% interest in PSA operator JKX (Ninotsminda) Ltd., with the other 49% held by private shareholders. JKX (Ninotsminda) will receive 50% of production until its development costs are recovered and 30% of subsequent production. The state will take the rest.
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