Shallow Fields Production Unit – Mtsare Khevi Field – Operations Gallery, December 2008 – January 2010

A total of 14 wells were drilled at the Mtsare Khevi Field from August 2008 through March 2009. Throughout the program, operations have targeted three reservoir objectives within the Upper Pliocene age Akchagil formation.
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March 2009: Well #27 is part of a program designed to expand development drilling into the northwestern portion of the Mtsare Khevi Field structure. Results from wells drilled in this portion of the field have yielded the best sustainable daily production rates to date, averaging 30-40 barrels per day per well from one of three objective horizons.
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Of the 14 wells drilled to date, nine have been been categorized as oil wells and five have been categorized as gas wells.
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March 2009 – May 2009: Oil processing facilities powered by produced gas have been installed in the field to reduce operating costs.
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May 2009: The drilling program at Mtsare Khevi field has established a new producing asset within the Shallow Fields Production Unit. Future plans for the field include continued development drilling and further appraisal drilling to continue to delineate the limits of the field, as well as the evaluation of undeveloped oil and gas potential from identified deeper horizons.
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A study is underway to quantify recoverable gas reserves and identify options for commercially producing the discovered gas into the nearby Georgian national gas grid.
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September 2009: Pictured below, rigging-up operations at the MK #24 well. In a continuation of the Mtsare Khevi development drilling campaign initiated in August 2008, three more wells were drilled at the field in September – October 2009, bringing the total wells drilled in the program to 17. Ongoing work at the field is designed to develop both oil and gas reservoirs associated with the Akchagil formation, situated between 200 meters and 350 meters in depth.
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September 2009: Oil production operations have focused on maintaining and increasing current daily production rates. To mitigate anticipated natural well decline rates and enhance the low recovery characteristics of the Akchagil’s oil bearing reservoirs, investments are underway to implement pump optimization programs, waterflood, and frac-stimulation initiatives prior to year end. Below, drilling operations at the MK #24 well.
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September 2009: Plans at the Mtsare Khevi Field call for the installation of new infrastructure for the transportation of gas to a pipeline within twelve kilometers of the field. Below, a truck arrives at the MK #24 well to begin cementing operations.
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January 2010: The completion of MK#29 marked the culmination of a recent four-well campaign designed to add to the existing inventory of eighteen new oil and gas wells in the field. Pictured below, logging operations at the MK#29 well.
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