Canargo Georgia press release regarding Manavi 13 and visit of Minister Kaladze
Canargo Georgia Limited is the fully owned operating subsidiary of Swiss Energy Partners AG, SEP, through Blake Oil and Gas Limited.
Swiss Energy Partners AG is a holding company incorporated in Baar, Switzerland, in January 2014.
SEP owns 50 per cent of Georgian PSC/A companies Ninotsminda Oil Company, Martkopi Oil Company, and Nazvrevi Oil Company, all three of which own production sharing contracts (PSC’s) in Georgia. The remaining 50 per cent is held by MND, a Czech-based Exploration and Production (E&P) company and SEP’s joint venture partner in Georgia. SEP remains Operator of all joint venture projects in Georgia.
The MND Group (Moravské Naftové Doly, a.s.) is the largest oil and gas producing company in the Czech Republic. It has invested billions of crowns in the pursuit of business activities related to oil and gas exploration and production, drilling services, energy trading and storage.
Domestically, in the Czech Republic, the MND Group operates a number of producing fields and is a key player in the gas storage business sector. It has a strategy of acquiring interests in producing fields, licenses with appraisal-stage discoveries and abandoned field assets (with the aim of re-opening them) in Central and Eastern Europe, Russia, Turkey, Georgia and Iraq.
Blake Oil and Gas Limited, acquired Canargo Limited out of US Chapter 11 bankruptcy proceedings in 2010. In the years leading to its bankruptcy Canargo’s activities in Georgia had failed to achieve operational and commercial success, making it financially vulnerable, in 2008, to a confluence of events including the six-day war between Georgia and Russia, the oil price, and the global financial crisis. By 2012 the business had been restructured. Canargo secured major financing through a farm-in with MND and embarked on a three-year plan to accelerate the development and appraisal of its Georgian assets with a capital expenditure of up to $100 million.
The Manavi 13 Well Details:
Drilling Contractor – Grey Wolf International is the international arm of Precision Drilling, the largest drilling contractor in North America. Rig 425 was mobilized to Georgia from Texas, USA, in December 2014
Subcontractors include; Halliburton, Schlumberger, Caspian Drilling Service and local Georgian contractors that prepared the roads, drill pad and are supporting the drilling operations and camp operations.
Work Force:
Georgians comprise over half of the total work force. The current number of personnel on site is approximately 87 each day. In addition, local Georgians are being employed for off-site jobs including traffic control, landscaping, construction etc.
Cost
The budget for the well is in excess of USD 30 million and to date, USD 10 million has been spent;
Work Program:
- Planning and tendering for the well began in May 2014
- Work commenced on the road and the rig site Sept 1st 2014
- Well was spudded or started on Mar 5th, 2015
- 20” casing was set at 472m Mar 19th
- Currently preparing to drill 17-1/2” hole to 2300m
- Total Depth for the well is estimated to be 4500m and expected date to finish the well is September 2015 and stimulate and test in Q4 2015 with an Extended Well Test to evaluate the Manavi structure leading to development with the support of the Georgian government if the Manavi 13 well is a success.
The forward plan after Manavi 13 is to move the rig to Norio during September and begin the second well Norio 73 around October 2015.