HOUSTON, TEXAS–(Marketwired – Dec. 4, 2017) – Greenfields Petroleum Corporation (“Greenfields” or the “Company“; TSX VENTURE:GNF) is pleased to announce that on November 27, 2017 Bahar Energy Operating Company Limited (“BEOC“), a wholly owned subsidiary of Greenfields, executed an exclusive memorandum of understanding (the “MOU“) with SOCAR Complex Drilling Works Trust (“SDT“), a subsidiary of the State Oil Company of the Republic of Azerbaijan (SOCAR), to formalize a partnership for the drilling of deep gas wells in the Bahar gas field offshore Azerbaijan.
BEOC has identified locations to potentially reestablish gas production from the deep NKP reservoir of the Bahar gas field. Prior to 1988, twelve wells were drilled to the NKP reservoir of the Bahar gas field and produced a total of 113 Bcf of natural gas and average aggregate production of 12 MMcf/d before being abandoned to uphole zones. None of these wells are available today to reestablish production and therefore BEOC is developing a partnership with SDT to drill new wells. BEOC estimates the NKP reservoir contains over 200 Bcf of remaining gas.
SDT has been very successful in drilling deep gas wells in the Bulla Deniz offshore gas field in Azerbaijan, most recently with Well No. 78, which was drilled and completed in 2017 producing at initial rates of approximately 17 MMcf/d of gas and almost 1,000 bbl/d of condensate.
Pursuant to the MOU, BEOC and SDT will be jointly inspecting the refurbished offshore BH 196 platform to ensure that safe drilling operations can be carried out to international standards. SDT will prepare the design and drilling plan for the deep wells and the parties will select drilling locations for deep wells of up to 18,000 feet of true vertical depth. Production facilities and flowlines are already in place to handle the additional gas production and BEOC has procured some of the drilling tangibles for the initial wells, including casing, tubing and wellheads. The parties expect to propose final plans early in 2018 to support the development drilling in Bahar later in the year.
John W. Harkins, CEO of Greenfields, stated: “This is an excellent opportunity for cooperation with SDT to drill new gas wells from the deeper reservoirs in the Bahar gas field and re-establish significant gas production for Azerbaijan.”
About Greenfields Petroleum Corporation
Greenfields is a junior oil and natural gas corporation focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Company plans to expand its oil and gas assets through further farm-ins and acquisitions of Production Sharing Agreements from foreign governments containing previously discovered but under-developed international oil and gas fields, also known as “greenfields”. More information about the Company may be obtained on the Greenfields website at www.greenfields-petroleum.com.