Geotex Geophysical Services will begin a seismic program in the northeastern segment of the License Area, concentrating on
the Chikuduk structure and additional leads identified in this sector. The Chikuduk, currently estimated at 60 kilometers in
length, is the largest structure identified in the License Area. It was not included in the Company's previously announced
preliminary independent estimates of 1.1 billion barrels of potential recoverable oil reserves. The Kazakstan government had
previously drilled a well in this structure, which blew out with gas and condensate, preventing its further evaluation of the well.
The second crew will be provided by Mangistaumuniageophysics (''MMG''), a Kazak-based geophysical company, which
will begin a seismic program in the southwestern portion of the License Area, near the Bengesh structure. Both crews have
been winterized to allow for the crews to continue operations throughout the year.
The company currently anticipates that, by January 1998, these seismic programs, which are part of the previously announced
minimum work program agreed to between the company and the Kazakstan government, should provide the necessary
information to map, in more detail, the structural leads in the area, including Chikuduk, and to evaluate their potential for
providing additional recoverable reserves. The higher-graded structures will then be prioritized for a drilling program, which
could begin in the second quarter of 1998.
I guess the Farris are running late. |
