KrisEnergy: Development of Cua Lo-1 Unlikely (Vietnam)

KrisEnergy Ltd., an independent upstream oil and gas company, announces the completion of the drilling and testing of the Cua Lo-1 exploration well in Block 105-110/04 (“Block 105”).

The Cua Lo-1 well was drilled to a measured depth of 2,867 metres, or 2,837 metres total vertical depth subsea. Based on log interpretation, several gas bearing sandstone reservoirs were identified.

A drill stem test was conducted on a reservoir evaluated with the largest potential within the prospect. Although gas flowed during the test, the poor reservoir deliverability rate combined with high carbon dioxide content suggests that development of the tested reservoir will be unlikely. The well will be plugged and abandoned.

The Cua Lo-1 well confirms both the trapping mechanism and the existence of a petroleum system in Block 105 and provides valuable data for deciding the future exploration strategy in the block. Additional oil and gas prospectivity exists within the block, providing opportunities for further exploration.

Block 105 covers an area of 7,192 sq km offshore northern Vietnam, overlying the central Song Hong Basin where water depths range from 20 metres to 80 metres. The water depth at the Cua Lo-1 location is 76 metres.

KrisEnergy holds a 25% working interest in Block 105 and is partnered by Eni Vietnam B.V. as the operator with 50% working interest and Neon Energy (Song Hong) Pty Ltd with 25%.

[mappress]
Press Release, January 09, 2014