Kulczyk See Commercial Success with Krutogorovskoye-7
Kulczyk Oil Ventures (KOV) has announced the discovery of commercial volumes of natural gas in the Krutogorovskoye-7 ("K-7") exploration well in Ukraine.
The K-7 well commenced drilling in September 2012 and was cased to a total depth ("TD") of 3,206 metres in early November 2012. Wireline logging of the well indicated up to five potential gas zones in the Bashkirian and Serpukhovian between depths of approximately 2,390 metres and 2,760 metres. A 10 metre section of the Bashkirian B12 zone, from a depth of 2,395 to 2,398 metres and from 2,400 to 2,407 metres, was selected for testing.
Production testing of the B12 zone yielded an initial rate of 4.937 million cubic feet per day ("MMcf/d") and a final rate of 4,971 MMcf/d through an 8 millimetre ("mm") choke during a 50 minute initial flow period. Average production rate during this initial period was 4,934 MMcf/d. Flowing tubing pressure, which averaged 15,185 kilopascals ("kPa"), was fairly constant ranging between 15,196 kPa at the start of test to 15,300 kPa at the end of the initial flow period.
The well was flow tested again approximately three days after the initial flow period for a total of 14 hours using various choke sizes and achieving a maximum rate of 5.914 MMcf/d through a 9 mm choke at a flowing pressure of 14,930 kPa. Average production through the 9 mm choke was 5.896 MMcf/d at an average flowing pressure of 14,435 kPa. Average flow rates and pressures during the three day test period are shown in the table below:
During the test the well was slugging condensate and analysis of well data indicates a calculated rate of 33 barrels of condensate per MMcf of gas.
The well, which has now been shut-in to observe pressures, is expected to be on production in the third quarter of 2013 after the construction of 1.7 kilometre of new pipeline.
Krutogorovskoye is a 1,100 hectare exploration licence granted to KUB-Gas in 2004. It is located near the city of Lugansk, approximately 105 kilometres to the southeast of the KUB-Gas licences at Olgovskoye, North Makeevskoye and Makeevskoye and 12 kilometres northwest of the KUB-Gas licence at Vergunskoye.
The K-7 well is operated by KUB-Gas, an indirect partially-owned subsidiary in which KOV has a 70% effective ownership interest. The assets of KUB-Gas consist of 100% interests in five licences near to the City of Lugansk in the northeast part of Ukraine. Four of the licences are gas producing.