The O-9 well commenced drilling and reached a total depth of 2,638m and the well was primarily designed to test gas-bearing reservoirs in the Middle Bashkirian and further develop the gas production capability of the Olgovskoye Field.

The testing of the O-9 well began in June when a 5.5m thick reservoir unit in the Lower Bashkirian at a depth of about 2,560m (the R37 unit) was perforated, and a 2m section of the R37 unit was perforated and tested over two periods of time.

The first test flowed gas at a rate of 1.2mmcf/d through a 6mm choke, while the second test flowed gas at a stabilized rate of 762mcf/d through a 5mm choke.

The testing of the Middle Bashkirian sandstones, which are the primary target of the O-9 well, began on 22 July 2011 when two 3m zones of one of the potential gas zones in the Middle Bashkirian were perforated from measured depths of 2,304m to 2,307m and from 2,309m to 2,312m, respectively.

These perforated intervals flowed gas at rates ranging between 1.7mmcf/d (on a 5 mm choke) to 4.4mmcf/d with a stabilized flow rate of 2.9mmcf/d on a 7mm choke.

The tested zone, which is only one of several potential gas producing zones seen in the Middle Bashkirian section in the O-9 well, is expected to begin commercial production at a gross rate of about 1.5mmcf/d prior to the end of the third quarter.

Initially, this well will produce only from the tested Middle Bashkirian zone and gas reserves indicated by the testing of the Lower Bashkirian gas zone.

O-9 was the second new well drilled in the Olgovskoye field since the company acquired its interest in KUB-Gas in June 2010 and it is part of a larger development program on the KUB-Gas assets which will continue through this year and next year.

The company said the service rig is now being moved to the Olgovskoye-8 well which was the first new well drilled on KUB-Gas Ukraine licenses since the acquisition by KOV in June 2010.

The O-8 well reached a total depth of 2,780m in early January and encountered multiple potential gas zones, and the testing will commence in a few weeks once the service rig move is completed.