JSC NC "KazMunayGas" and Korean Consortium “KC Kazakh B.V.” report on the results of the drilling

From May to August 2013 KMG and KCK performed drilling operation for the first exploration well in the structure “Zhambyl” (ZB-1) with the depth of 2,200 meters. The operator “Zhambyl Petroleum” LLP organized the drilling operations. The drilling works directly was performed by Kazakh contractor, “Teniz Burgylau” LLP certified by international standards, which is a 100% daughter company of KMG.

As a result of drilling in the Middle Jurassic formation, 2 oil-gas prospective objects were confirmed. In the DST (Drill Stem Test) of these objects, there was a natural flow of oil and gas with production volume 24㎥ per day on choke size 6.35 mm (16/64”) and 110㎥ per day on choke size 12.7 mm (32/64”).

 The DST was completed.

For the drilling works of exploration well in the structure “Zhambyl”, a brand-new offshore drilling rig “Caspian Explorer” was used, which was built specially for exploration in the area “Zhambyl” under the agreement between KMG and KCK. For the first time, manufacturing facilities of Kazakhstan Company “Ersai Caspian Contractors” LLP was used for construction of the drilling rig in the port of Kuryk (Mangistau region).

While drilling operation, all environmental regulations of the Republic of Kazakhstan and standards defined by the best international practices were observed.

KMG and KCK will continue exploration work in the area Zhambyl. 3D seismic studies on Zhambyl field and drilling of an exploration well in the structure «Zhetysu» (ZT-1) are planned.

According to the results of geological and geophysical surveys, laboratory core analysis and reservoir fluid, it is planned to provide calculation of hydrocarbon reserves in the structure “Zhambyl”.