TSX TRADING SYMBOL: ABG
ANGUILLA, British West Indies, Oct. 16 /CNW/ - Arawak Energy Corporation
("Arawak or the "Company") is pleased to announce, following the exploration
success at Besbolek disclosed in July 2007, further discovery wells in both
its Besbolek and Akzhar fields drilled on the basis of 3D seismic
interpretations completed earlier this year.
At Besbolek, well 60 was drilled in the south wing, in one of the down
dip fault blocks. Open hole logs indicate that the well has encountered three
oil-bearing horizons in the middle Jurassic interval. The total net thickness
of the oil-saturated interval is 46 meters. So far, only the lowest level,
which has less productive reservoir characteristics, has been tested, with a
small inflow of clean oil. However, a productive capacity of approximately 100
barrels of oil per day ("bopd") is expected from the upper horizons, which
will be tested shortly. This well confirms additional down dip oil reserves in
the middle Jurassic in the new pool discovered earlier by the successful
exploration well 50.
Also at Besbolek, well 62 was drilled in the west wing of the block and
has encountered new oil accumulations in the lower and middle Jurassic
sediments between two major faults in the down-dip block. A test of the
interval 330-334 meters gave an inflow of oil at a production rate of 40 bopd.
The upper interval behind pipe at 275-291 meters has not yet been tested and
is expected to increase capacity from the well to over 100 bopd.
At Akzhar, well 81 was drilled in a previously untested area between the
two wings of the original 3.8 sq km block (which was later expanded to 72.5 sq
km). Open hole logs reveal that the well has encountered two oil-bearing
intervals in the Barremian and Aptian deposits. On production test, the first
of the two horizons produced 100 bopd of clean oil with potential to produce
at a higher rate. Further appraisal wells are planned in this play.
Also at Akzhar, a further exploration well, well 80, drilled in an
untested fault wedge has encountered oil on logs but has yet to be completed.
The Company currently has four active drilling rigs in Kazakhstan with
two rigs completing the Besbolek drilling program and two rigs active at
Akzhar where a further five exploration wells will be drilled before year end.
Meanwhile a workover rig has just been mobilised and is commencing workovers
of old wells at the Alimbai block acquired by the Company in January 2006.
Three new wells are planned for Alimbai before the end of 2007. Currently no
reserves have been attributed to this block.
So far this year, the Company has drilled 27 development, appraisal and
exploration wells at Besbolek and Akzhar, 21 of which have commercial
production capability. Current production from Kazakhstan is approximately
Alastair McBain, the Company President and Chief Executive Officer,
commented "We are delighted by the high overall success rate of our aggressive
2007 drilling campaign at Besbolek and Akzhar and to be proving up more
reserves as well as building production. These successes provide the
foundation for a development drilling program in excess of 50 wells over the
next three years. We have more locations to drill, particularly at Akzhar, and
look forward to further success."
The Company plans to continue Akzhar exploration with a further eight
wells in the first quarter of 2008.
The TSX does not accept responsibility for the adequacy or accuracy of
Arawak's common shares are listed for trading on the TSX under the symbol
"ABG". The Company is engaged in the exploration, development and production
of oil and natural gas in Kazakhstan, Russia and Azerbaijan. The Company's
three producing fields and two exploration blocks in Kazakhstan are held
through its 100% wholly-owned subsidiary Altius Energy Corporation ("Altius").
Altius' main producing field is Akzhar, extended in 2006 from 3.8 to 71.5 sq
km, with smaller fields at Besbolek and Karataikyz. The two exploration
blocks, Alimbai and East Zharkamys III, are also situated in western
Kazakhstan. Arawak's assets in Russia are held through ZAO PechoraNefteGas
("PNG") and LLC NK Recher-Komi ("Recher-Komi") in which Arawak has a 50%
interest with the remaining interest being held by Lundin Petroleum AB. Also
in Russia, Arawak holds a 100% interest in the Kymbozhyuskaya exploration
block. In the Azerbaijan Republic, the Company's asset is its interest in the
South West Gobustan fields. Commonwealth Gobustan Limited ("CGL"), in which
Arawak has a 37.17% interest, holds an 80% interest in the EDPSA with the
remaining 20% owned by SOCAR Oil Affiliate.
This press release includes "forward looking statements", which are based
on the opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward looking statements. These risks and
uncertainties include, but are not limited to, risks associated with the oil
and gas industry (including operational risks in development, exploration and
production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections in relation to
production, costs and expenses and health, safety and environmental risks),
the risk of commodity price and foreign exchange rate fluctuations, the
uncertainty associated with commercial negotiations and negotiating with
foreign governments and risks associated with international activity. Due to
the risks, uncertainties and assumptions inherent in forward-looking
statements, prospective investors in the Company's securities should not place
undue reliance on these forward-looking statements. For a detailed description
of the risks an uncertainties facing Arawak, readers should refer to Arawak's
Annual Information Form as filed at www.sedar.com.
For further information:
For further information: Alastair D. McBain, President & Chief Executive
Officer, Phone: +(44) 20 7973 4285, Fax: +(44) 20 7824 8466, E-mail:
firstname.lastname@example.org; Charles R. A. Carter, Chief Financial Officer, Phone:
+(44) 20 7973 4285, Fax: +(44) 20 7824 8466, www.arawakenergy.com