ALMATY, Kazakhstan, Nov. 15, 2010 /PRNewswire/ -- BMB Munai, Inc. (NYSE Amex: KAZ) announced initial production rates from its Kariman-1 well following completion of a sidetrack well bore commenced in August 2010. "The well has produced at the stable rate of 925 bpd during the past 15 days," said Gamal Kulumbetov, Company CEO, noting, "This significant increase in production has been achieved at a cost of only $1.7 million dollars and was completed in less than four months."
The Kariman-1 well was originally drilled by the State in 1967 targeting Jurassic formations at a depth of 3,069 meters. In 2006 BMB Munai's subsidiary deepened Kariman-1 well to 3,361 meters, penetrating upper Triassic formation and 7 meters of the middle Triassic formation. Once middle Triassic formation was pierced, abnormally high pressure and difficult well construction design rendered it impossible for the Company to continue further drilling. The Company perforated the upper Triassic pay zone and realized stable production of approximately 52 bpd prior to commencement of sidetrack drilling.
In August 2010, the Company started a sidetrack well, targeting middle Triassic layers. The sidetrack well was drilled by a subcontractor, Xibu Drilling to a depth of 3,521 meters. The Company experienced significant oil shows and high pressure during drilling which allowed penetration of only 160 meters of middle Triassic formations. The current production rate of 925 bpd is quoted for the choke of 14mm, set at the wellhead.
BMB Munai is an independent oil and gas company engaged in the exploration and test production of crude oil and natural gas in Western Kazakhstan. The Company maintains administrative offices in Salt Lake City, Utah and Almaty, Kazakhstan.The information contained in this release includes forward -looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Certain statements contained herein constitute forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward -looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied. Forward -looking statements involve risks and uncertainties, including but not limited to, risks described in the Company's periodic reports on file with the Securities and Exchange Commission. SOURCE BMB Munai, Inc.