Zhaikmunai LP, the oil and gas exploration, development and production company, provides an update on its Kazakh operations for the period from July to 30 September 2008.

At the beginning of September 2008 Ryder Scott finalised reserve estimation as of July 1, 2008, and reported significant increase in 2P reserves (534 mmboe) and 3P reserves (1080 mmboe).

Production volumes for the third quarter of 2008 increased to 530.422 bbls, up from 468.231 bbls in the equivalent period in the previous year.

Daily production has risen to 7,500 barrels per day (up from an average of 5,067 barrels per day in Q3 2007) while the average production rate per well is 681 barrels per day.

As at 30 September 2008 there were 11 producing wells, compared to 7 producing wells as at 31 December 2007. The one millionth tonne of oil from the Chinarevskoye Field was produced on 27 August 2008.

During Q3 2008 the company operated 4 drilling rigs. All 4 rigs have been drilling in the North Eastern part of the license area. The two Saipem rigs have been drilling well number 52 and well number 62. The two UNGG rigs have been drilling well 115 and 121.

During the period under review the company employed 4 work over rigs. Work over operations have been going on for wells 27, 31, 32, 33 and 57.

Lastly, during Q3 2008, the company employed a small rig from a local contractor drilling water production wells.

In June this year, Zhaikmunai announced six commercial discoveries in the Chinarevskoye field following the submission of the relevant declarations to the Kazakh Ministry of Energy and Mineral Resources (MEMR) on 19 May 2008. As a result of these submissions, on 17 November 2008 the MEMR signed a supplementary agreement to Zhaikmunai’s original Production Sharing Agreement thereby extending its licence for a further three-year period.

Kai Uwe Kessel, Chief Executive of Zhaikmunai, commented, “We have made good progress during the quarter and we are confident this will continue for the rest of the year. We are on course to increase our output and the extension of the licence reinforces our belief on the potential of the field.”

Tags: Zhaikmunai L.P.