krisenergy's announcement

Dear All,

The KrisEnergy announcement re Block 120:-

Vietnam Ca Ngu-1 exploration well reaches total depth
Singapore, 31 December 2013 – KrisEnergy Ltd. (“KrisEnergy” or “the Company”), an independent upstream oil and gas company, is pleased to announce that the Ca Ngu-1 exploration well in Block 120 has reached a total depth of 1,290 metres measured depth (“MD”), or 1,267 metres total vertical depth subsea (“TVDSS”).

The Ca Ngu-1 well commenced drilling on 10 October 2013. Water depth at the Ca Ngu-1 location is approximately 270 metres. Wireline log data confirmed the presence of gas in Pliocene sandstone reservoirs, and a 15.2 metre gross hydrocarbon column within the Miocene carbonate reservoir, comprising a 10.6 metre gas column above a 4.8 metre oil rim. Drilling operations have been delayed by a series of strong typhoons passing through the region, which have resulted in the evacuation of crew from the Songa Mercur semisubmersible rig on several occasions.

Chris Gibson-Robinson, KrisEnergy’s Director Exploration & Production, commented: "Ca Ngu-1 is being plugged and abandoned after encountering gas and oil volumes in the primary objective. Although the Ca Ngu well did not encounter significant volumes of hydrocarbons, it has confirmed the existence of a petroleum system in the area and provides valuable data for us and our partners to analyse before deciding our future exploration strategy within Block 120. We are encouraged by the preliminary results and it is important to reiterate that Block 120 has multiple exploration plays.”

Block 120 covers an area of 8,574 sq km overlying the Quang Ngai Graben and the Tri Ton Horst where water depths range from 50 metres to 1,100 metres. The graben connects the Song Hong and Qiongdongnan basins in the north to the Phu Khanh Basin in the south. KrisEnergy holds a 25% working interest in Block 120 and is partnered by Eni Vietnam B.V. as the operator with 50% working interest and Neon Energy (Song Hong) Pty Ltd with 25%.

http://www.krisenergy.com/default/assets/File/KrisEnergy%20Block%20120%20CuNgu-1%20total%20depth%2031Dec2013(2).pdf