American International Petroleum Corp. completed testing the Begesh #1 well on License 953 in Kazakhstan.
After testing multiple intervals, where noncommercial gas and immobile oil was encountered, the company stopped further testing.
However, one of American International's well partners intends to test additional deeper intervals on an "exclusive operation" basis pursuant to the existing Joint Operating Agreement. The accord permits any partner to test a particular interval at its own cost.
If oil or gas is found in commercial quantity, all the other partners will participate in sharing the revenue in proportion to their working interest once the engaged partner recoups 200 percent of its expenses.
American International said it would assess the Begesh #1 test results to determine if additional drilling in the area is warranted in order to determine if further delineation of the Jurassic formations have potential for commercial development.
© 2001 Mena Report (www.menareport.com)