This paper addresses the successful isolation of a loss circulation zone of a short radius horizontal completion utilizing the cement retainer technique in a highly fractured environment. The process was applied to a well in a highly fractured carbonate reservoir undergoing pressure maintenance by water injection. Fracture orientation in the area is running mainly NE/SW. While drilling the horizontal section, complete lost circulation was encountered in the middle of the planned lateral section, most probably through a fracture. Circulation could not be regained by pumping LCM pills or placing cement plugs. The horizontal section had to be plugged and a new horizontal lateral was drilled in a different direction. A drillable squeeze packer was used to hold a good kick-off cement column above the loss circulation zone. Prior to the workover, the well was producing 3.3 MBOD at 47% water cut. The initial post workover test showed 3.0 MBOD restricted (choked) water-free production.