Kulczyk Oil successfully tests K-7 well, provides no data on NM-2 well

KUB-Gaz, a 70% subsidiary of Kulczyk Oil (KOV PW), tested its new K-7 well at the maximum rate of 5.9 MMcf/d, Kulczyk announced on Feb. 1. The average flow rates during the three-day testing varied from 2.27 MMcf/d at a 5 mm choke to 5.9 MMcf/d at a 9 mm choke. The well is expected to be tied-in for commercial production in 3Q13 after the construction of 1.7 km of new pipeline is completed.

Roman Dmytrenko: The successful K-7 well production tests are of little surprise to us after the company’s announcement of drilling logs locating up to five potential gas-bearing zones in November 2012. Overall, the news looks encouraging for those who are concerned about KUB-Gaz’s resource base, as the results de-risk an estimated 9.0 Bcf of the prospective resources of the Krutogorovskoye license area.

What makes us worry is the postponement of the putting on stream of the K-7 well by one quarter beyond the initial plan. Moreover, we still have not received any update on the company’s drilling of its NM-2 well, which should have been finished two weeks ago, based on its initial plan.