Block XIe (Ninotsminda Field and Manavi Discovery)
Ninotsminda Oil Company Limited’s PSC contains the Ninotsminda Field and the Manavi Cretaceous Discovery. SEP, through various subsidiaries, owns a 50% interest in Ninotsminda Oil Company with its joint venture partner, MND, holding the remaining 50%. Canargo Georgia Limited, an ultimate wholly owned subsidiary of SEP, operates the Ninotsminda PSC.
Ninotsminda field was discovered in 1979. The Ninotsminda field is the easternmost element of the Samgori-Patardzeuli-Ninotsminda complex which collectively are estimated to have produced over 200 million barrels to date. The primary reservoir is a Middle Eocene fractured volanoclastic at a depth of 2,300-3200 meters. Discoveries and production have also been achieved in the shallower Upper Eocene and Oligocene reservoirs which may lead to future production and reserve growth. Today the Ninotsminda field produces ~300 bopd of high quality sweet oil (38 API) and 630 mcfpd of gas (0.654 SG). The joint venture is currently evaluating the development potential on the east side of the structure for a possible horizontal well and brownfield re-development of the Middle Eocene has also been initiated to increase production and reduce lifting cost.
The Ninotsminda PSC also includes the Manavi discovery, a cretaceous fractured carbonate which is believed to be the first Cretaceous discovery in the south Caucasus. The discovery was identified through three penetrations; the M11, M11z and M12 made prior to SEP’s ownership. While the M11 and M12 did flow oil to surface, none of the wells fully tested the potential of the discovery due to various mechanical and downhole issues including a casing collapse on M11 and an incorrect completion and stimulation on the M12 resulting in excessive water believed to be from a failed plug isolating a lower zone. A 2D seismic program covering a substantial portion of the block was completed in 2013/2014. The partners spud the Manavi 13 well (up dip to the M11 and M12) on March 5, 2015. The budgeted work programme is substantially fully funded by MND.