Zenith Energy managed to complete a workover without subcontracting.
The move is in line with the company’s strategy going forward, according to its chief executive.
The firm’s Team A, comprised of the company’s field personnel and operating Zenith’s fully owned workover rig, has completed pump replacements at a number of different wells.
Company leader Andrea Attaneo said: “It is very encouraging that Zenith’s internal field rehabilitation team operating the Company’s fully owned workover rig, named Team A, has succeeded in its introductory activities by undertaking relatively simple submersible pump replacements that have increased production from the wells. These activities also had the objective of assessing the technical capabilities of the Team and their modus operandi. The speed and efficiency of Team A has been impressive.
“The Board is increasingly of the view that the use of the Company’s own personnel and equipment for its field rehabilitation operations is the preferred choice going forward as opposed to sub-contracting fieldwork to more expensive third party contractors. The recent success of Team A further reinforces the merits of this position. Team A can now graduate to become a fully-fledged workover team and begin the workover of well M-45.
“This reflects our guiding principle of being a low cost operator. The use of the Company’s resources is always evaluated in consideration of this budgetary model. Zenith’s 14bopd production increase achieved from pump replacement activities, whilst a relatively small number at first glance, is of greater importance if one considers the increase in revenue resultant from production relative to the extremely low operational expenditure incurred by applying the Company’s own resources to achieve this result. The cost-benefit aspect of Zenith’s in-house field rehabilitation operations should therefore not be overlooked.
“I am also pleased to report that the Company is making progress in its negotiations for the acquisition and financing of a high-specification Chinese drilling rig. The arrival of this drilling rig will allow the Company to begin a systematic drilling campaign that would be highly cost-effective and underpin the Company’s projected long-term production increases in Azerbaijan.
“In the interests of clarity it should also be underlined that the workover programme will continue with growing momentum in the period before the drilling rig arrives and will then run parallel to the drilling programme to maximise oil production from the field.
“I can also confirm that an update regarding the workover of well M-195 will be provided during the week.”