DUSHANBE (TCA) — Skyland Petroleum Limited has commenced oil production from its first well of several on the Kyzyl-Tumshuk oil and gas field in Tajikistan, the company said on June 20.
Production from this first well combined with the low capital and operating costs of the field makes it possible to generate early cash flow and this cash flow is expected to steadily increase in the coming months due to several other planned well interventions to further increase production to the company, Skyland Petroleum said.
Stephen Elliott, the company’s Vice President Project Development, commented, “We are very pleased to have brought on production of oil from the Kyzyl-Tumshuk field so quickly, particularly given the necessity to install additional surface facilities and to overcome the logistical challenges this entails. The oil produced will be sold on the local market, which will immediately generate cash flow for the Company. We have a number of other target wells on the field for both oil and gas production, and preparations for these operations are proceeding well.”
David Robson, Chairman and Managing Director, added, “This is a major milestone for the Company. We have met our objectives in terms of both timing and cost, and we are confident that we can ramp up production quickly. I believe this is a real step forward for the Company and shows that we can meet our targets efficiently and generate value for our shareholders.”
Skyland Petroleum Limited is an oil and gas exploration and production company listed on the Australian Securities Exchange (ASX) and primarily focused on projects in Central Asia, the Caucasus and Russia.
The Kyzyl-Tumshuk field (also known as the Surkhsimo field) is a producing oil and gas field in the Vaksh valley in the southeast of Tajikistan. The Kyzyl-Tumshuk field is in the western part of the Vakhsh megasyncline of the Afghan-Tajik Basin, which is an extension of the prolific Amu-Darya Basin of Turkmenistan and Uzbekistan. The field was initially interpreted on seismic in the 1940s, with the first discovery well drilled in 1959.