Document date: Tue 07 Jan 2003 Published: Tue 07 Jan 2003 15:35:01 Document No: 230426 Document part: A Market Flag: Y Classification: Progress Report KALREZ ENERGY LIMITED 2003-01-07 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ Following is an update on current activities of our interests on Seram Island.
BULA DEVELOPMENT WELL ACHIEVES STRONG OIL SHOWS (KALREZ - 100%)
Development Well 89-K-5 spudded on December 31 2002 in the Bula Tengarra Region of the Company's wholly owned Bula field on Seram Island in Eastern Indonesia.
The well has reached a depth of 344.74 mKB, with drilling currently suspended. Current operations are conditioning mud for electric logging of the open hole section from 61.5mKB to 344.74mKb.
After registering oil shows in the interval 132.5 - 140mKB, further shows were recorded in the interval 222.5 - 244.75mKB, with good oil shows from 232.5 - 237.5 mKB and excellent shows from 242.5 - 244.75mKB. At this depth influx of oil and gas was significant and drilling suspended whilst mud weight was increased to 11PPG.
Following electric logging 7" casing will be run to approximately 220mKB (to be confirmed from electric log data).
After setting 7" casing, the zone 220-244.75 mKB will be under reamed and subject to results the well may be deepened until a change of lithology from the current sandstone.
The initial results are pleasing and confirm the potential for further development in the Bula Tengarra region. A further well will be drilled in this region immediately following the completion of 89-K-5.
Whilst it is expected that the well will be completed successfully as a producer, it should be understood that there have been previous difficulties associated with completions of similar wells in this region. We refer to commentary in our earlier ASX announcement of the 3rd January 2003.
A final report will be issued after the well is completed.
COMMISSIONING CONTINUES AT OSEIL (KALREZ - 2.5%)
Kalrez Energy Limited is a 2.5% shareholder in the Seram Joint Venture which owns and operates the Oseil oilfield. The major shareholder, and operator of the JV, is Kufpec (Indonesia) Limited with 97.5%.
Kufpec have advised that the Oseil oilfield is continuing to experience normal commissioning issues associated with oil of this type (low API, high sulphur). To date approximately 30,000 barrels of oil have been produced. Oseil 4 continues to flow under natural flow at approximately 4,000 barrels per day. Kufpec are concentrating on bringing Oseil 2 onstream, after which they will commence commissioning of Oseil 1.
For further enquiries please feel free to contact Mr Eddie Smith or Mr Simon Lill at the Company's offices on (618) 9362 9330.
