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Zoltav brings Zhdanovskoye field into production

09th October 2014

Zoltav Resources has announced that work to bring the Zhdanovskoye field in south-west Russia into production through the Western Gas Plant has progressed ahead of schedule

 Zoltav brings Zhdanovskoye field into production
A third well on the Zhdanovskoye field (Well 30) is forecast to come on stream later this month, contributing further to production volumes

Well 102 and Well 8 commenced commercial gas production on 8 October 2014.

"I am delighted to report the first significant operational milestone achieved since Zoltav's acquisition of the Bortovoy Licence completed in June 2014,” said Symon Drake-Brockman, Zoltav executive chairman.

“In under five months of ownership we have brought a second gas field on the licence into commercial production thereby increasing daily gas output by approximately 20 per cent. This further evidences Zoltav's experience of operating efficiently and effectively in Russia."

The two wells have added an additional 8.8 mmcf/d of stabilised production.

A third well on the Zhdanovskoye field (Well 30) is forecast to come on stream later this month, contributing further to production volumes.

The issuance by the safety regulator (Rostechnadzor) of a temporary permit allowing production from the Zhdanovskoye field to commence while the full permit is pending has contributed to the field coming on stream earlier than anticipated.

The full permit is expected before year-end in accordance with the original plan.

Well 102, which was drilled in 2008, and Wells 8 and 30, which were drilled during the 1970s, had not previously been put into production. The three well Zhdanovskoye hook-up project was commissioned by Zoltav shortly after the Company assumed managerial responsibility for the Bortovoy Licence.

In addition to bringing the Zhdanovskoye field into production, Zoltav is currently drilling an infill well (Well 100) on the Karpenskoye field (the main producer) which is also expected to come on stream later this month. This is expected to further increase output from the Karpenskoye field. By year-end the Company expects to be producing 46.2 mmcf/d of gas from the Western Gas Plant.

The full plant capacity of 48.4 mmcf/d is expected to be achieved during the first quarter of 2015 once work-over operations on two wells on the Karpenskoye field have been completed.

Zoltav's main priority since the acquisition of the Bortovoy Licence in June 2014 has been to restore the Western Gas Plant to its full average daily production capacity of 48.4 million cubic feet of gas per day (mmcf/d).

Zoltav planned to achieve this by boosting current production on the Karpenskoye field (the current producer) with a series of work-over operations and through the drilling of an infill well; as well as through the hooking-up the Zhdanovskoye field to the Western Gas Plant.

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