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that the reasons for those failures were low exploration drilling amounts
and testing and premature negative estimates of specific structures based
on testing results of the first well (Absheron, Nakhchyvan, Zafar-Mashal,
Talysh-Deniz, Kyurdashi, etc.). In our view, these geologists do not take
into account the high quality of seismic, logging and production testing
of these wells and their most favorable structural positions, mostly in the
near-crestal zones and in higher areas of the flanks. However, the main
reason is the lack of creativity in the approach and systemic strategic blun-
ders of the consultants and the appropriate services of the projects' oper-
ating companies relying on their exploration and appraisal experience in
other basins and not accounting to a proper extent for geologic uniqueness
of the South Caspian Basin. Their thinking was on the level of individ-
ual contract blocks and prospects and did not devote due attention to the
systemic analysis and synthesis of the available data about actual patterns
in the regional, zonal and local spatial positioning of natural HC's in the
Productive Sequence (Red-Bed Sequence) on the basinal scale. It did not
devote the due attention to the experience and results of earlier exploratory
operations. It was lacking in critical approach to the quality, objectivity and
dependability of the geologic information provided by local state organiza-
tions to the investors on the preparation stage of PSА contracts.
Indeed, as early as in 1960-1980's, local organizations drilled 20
deep (up to 6,755 m) exploratory wells in the coastal area of the Lower
Kura Depression (Kyzylagach Prospect) and in the western part of the
Azerbaijan shelf, in the central and southern anticlinal zones of the Baku
Archipelago and in the west of the South Apsheron shelf (South-Apsheron
Trough). Fourteen prospects were involved (Hamamdag-Deniz, Garasu,
Sangi-Mugan, Ulfat, Aran-Deniz, Dashly, Sabail, Byandobvan-Deniz,
Yanan Tava, Ateshgyakh-Deniz, Giladasy, Umid, Seyyar and Lokbatan-
Deniz). The objective was to penetrate and test intervals in the “Pereryv”
Fm. (УII horizon under the local nomenclature) and lower Balakhany Fm.
believed to be regionally oil and gas prospective. Only one of those wells
(Garacu-25) tested more or less stable, although a short-lasting flow of
heavy oil established the existence there of a small half-destroyed fault-
trapped accumulation. All other wells of the 13 prospects gave negative
results.
Exploration and appraisal in the same period in the North Apsheron
zone of highs (Agburun-Deniz, Goshadash, Mardakyany-Deniz, Garbi
Absheron, Shimali Absheron, Shargi Absheron, Khazri and Gilavar pros-
pects) was also inefficient. No large hydrocarbon accumulations were dis-
covered there. The same result befell exploratory operations in the eastern
and southern parts of the Basin. All seven wells with TD's up to 5,732 m
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