The March 24th RNS confirming completion of the Ezzaouia acquisition included a comment by AC to the effect that workover and drilling activities to develop the “significant unexploited potential” were anticipated to commence “in the very near future” following consultation with our partners.
Leaving aside the admittedly debatable interpretation of what “in the very near future” actually means timewise, there appears to be two components to the intended work program as described in the March 15th RNS announcing the acquisition. The first is described as “Planned field production optimisation and workover activities expected to increase Ezzaouia gross production to 1000 bopd (potentially resulting in a production of 450 bopd net to Zenith).” The second refers to the “New Concession” and “the agreed work program between ETAP and EPZ” signed by both parties and currently awaiting parliamentary approval. This includes “the drilling of a side-track, the drilling of a replacement well and that of a development well” during the course of the new 20-year concession.
From what I understand of the geological assessment of field potential as discussed in a report prepared by ETAP geologists in 2014, and the current operational context, I infer that the first element of the proposed developments ie “production optimisation and workover activities” will be fast tracked, under the auspices of MARETAP the joint ETAP/EPZ operating company. MARETAP operates on a cash-call basis so any work agreed will require a 50% cash contribution from ZEN and will be sub-contracted.
In the absence of information to the contrary I assume all six EZZ wells [no’s, 1, 2, 9, 11,17 & 18] operational in June 2015 are producing and that flow is primarily, if not exclusively, from the Upper Jurassic M’rabtine formation, for which the wells were optimised during 2012/13/14 following a decline in production from the Lower Cretaceous Zebbag dolomitic carbonates which were historically the main reservoir. The M’rabtine reservoirs are sandstones with 17% porosity and 130 md permeability, interbedded with carbonates and shales. The current cumulative production of 465 bopd compares with an estimated 750 bopd maximum in mid-2015.
I assume that a significant portion of the decline is due to reduced flow from CaCO3 scaling of production pipes, as there is a CO2 component to the gas and a high water content, so de-scaling is probably part of the initial workovers. Since EZZ-11 was brought on line in 2015 after perforation of a newly identified production zone, there may also be scope for similar interventions in other wells sufficient to achieve the 1000 bopd.
Whatever the proposed “production optimisation and workover activities” entail, it seems likely that AC will have agreed to an immediate “cash call” from MARETAP as part of the Ezzaouia Field acquisition deal, both to assure ETAP of his financial commitment and to ensure as rapid a progression to the 1000 bopd target as possible. Hopefully the forthcoming presentation and associated company announcements will confirm such developments.
AGEOS.
når de investorer du nevner der seller dagen etter at de får de aksjene 
