OTM INTERNATIONAL DEVELOPMENT - UPDATE ON EXPLORATION ACTIVITIES.VANCOUVER, British Columbia--(BUSINESS WIRE)--May 10, 1995--OTM International Development Inc., announced today confirmation of two primary oil reservoir An oil reservoir, petroleum system or petroleum reservoir is often thought of as being an underground "lake" of oil, but it is actually composed of hydrocarbons contained in porous rock formations. zones and the discovery of a third oil zone plus an unexpected gas sand in its initial test well in the Aktash Field, Crimea, Ukraine. Well logs indicate very high oil saturations in the two primary reservoirs, the company reported, and there were substantial oil shows in the circulating drilling muds Noun 1. drilling mud - a mixture of clays and chemicals and water; pumped down the drill pipe to lubricate and cool the drilling bit and to flush out the cuttings and to strengthen the sides of the hole drilling fluid . In addition, gas content was higher than expected, promising a lighter API gravity The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light a petroleum liquid is compared to water. If its API gravity is greater than 10, it is lighter and floats on water; if less than 10, it is heavier and sinks. oil and better natural flow rates. The two reservoirs are Neogene (Miocene) oolitic o·o·lite also o·o·lith n. 1. A small round calcareous grain found, for example, in limestones. 2. Rock, usually limestone, composed of oolites. limestone. The upper zone, reservoir I, has an average porosity porosity /po·ros·i·ty/ (por-os´it-e) the condition of being porous; a pore. po·ros·i·ty n. 1. The state or property of being porous. 2. of 23% across about 4.5 metres of net pay while the lower zone, reservoir V, has an average porosity of 25% across more than 3.5 metres of net pay. In addition to the two primary reservoirs, another reservoir (VI) was discovered immediately below reservoir V. This zone, which appears to be another layer of oolitic limestone about 3 metres thick, may add significant recoverable reserves to this field. Finally, while drilling below reservoir VI, the company encountered an unexpected gas reservoir gas reservoir In geology, a naturally occurring storage area, characteristically a folded rock formation, that traps and holds natural gas. The reservoir rock must be permeable and porous to contain the gas, and it has to be capped by impervious rock in order to form an . The gas response from this reservoir had probably been suppressed by the heavier drilling muds used in earlier drilling by the former Soviet Union. Because OTM OTM See: Out of the money. uses blow-out preventers on the drilling rig, it can use balanced to slightly under-balanced mud weights which allow an experienced driller to detect almost all producible horizons. "With three oil reservoirs plus an unexpected gas-sand discovery, this first test well shows even more potential than we expected." said Ron Cormick, president of OTM. He added, "This is the first new field test well ever drilled by a western company in the Ukraine, using advanced western technology, in partnership with a local state organization. The company had to deal with a number of procedural and logistical obstacles during the drilling of this first well, but we do not expect such delays on future wells." The company will continue testing the reservoirs in this well for at least three more weeks before calculating definitive flow rates. After perforating the upper reservoir in this first well, and while testing continues, the drill rig will be moved to drill the second well, about 1,300 metres from the first. OTM holds the exclusive rights to explore, develop, produce and export oil and gas resources in a 28,000-square-kilometre region in Crimea, ukraine, where conservative estimates indicate a significant potential for oil, gas and gas condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. . The company believes that advanced Western technology may confirm even greater energy reserves in the area, directly on-trend with a major producing region of Russia. -0- The Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). has neither approved nor disapproved the information contained herein. CONTACT: OTM International Development, 604/681-4653 or Ron Cormick, 713/861-1118 |
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