Zenith Energy reports oil flow from previously non-productive well

Zenith Energy said on Thursday that it had completed successful perforation of a new, unexploited production zone in its C-26 well in the Jafarli field of Azerbaijan.

Following the perforation, the C-26 well was said to be flowing at a rate of 70 barrels of oil equivalents (boe) per day.

The identification of the unexploited ten-metre pay zone, at depths of approximately 3.6km, followed Zenith's Wednesday announcement regarding its three-pronged approach to revitalise its other asset in the South Caucus region, Zardab.

In what was said to be its "most technically demanding well intervention so far," Mike Palmer, chief operating officer of the company's Azerbaijan based subsidiary, Zenith Aran, said it could equally turn out to be "the most rewarding".

Palmer also said, "It is particularly important to note that well C-26 was not producing and that we have achieved a very significant increase in productions revenue from this well, from 0boe per day to 70boe per day."

As of 1000 BST, Zenith shares had moved forward 3.09% to 7.34p.