Kulczyk Oil announced that the Brunei Block L Joint Venture will shortly commence a testing program at the Lempuyang-1 and Lukut-1 wells, following encouraging indications during the drilling and from the interpretation of wireline logs from both wells. In addition, KOV announces the completion of both the Block L gravity survey and a large 3D seismic survey in Block M.
Block L Testing Program
Testing of the Lempuyang-1 well is expected to commence in January 2011 and will be followed by the testing of the Lukut-1 well. The testing program is designed to test two of three potential intervals in the Lempuyang-1 well, with an aggregate thickness of 56.4 meters and three of ten potential intervals in the Lukut-1 well, with an aggregate thickness of 155 meters. It may take approximately 14 days to evaluate each of the test intervals. Key components for testing, including the rig and the test equipment, have been secured.
The Lukut-1 well was drilled on Brunei Block L and suspended in mid-June pending testing by a service rig. The second Block L well, Lempuyang-1, commenced drilling operations on July 15 and was cased to total depth in early October and suspended pending testing.
Block L Airborne Gravity Survey
An airborne gravity survey covering approximately 3,000 km(2), including all of Block L, has been completed and interpretation is ongoing.
Kulczyk Oil Brunei Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, has a 40% interest in Block L.
Block M 3D Seismic Program
The Belait North 3D seismic survey covers approximately 136 km(2) 3D seismic survey. Field operations commenced on 3 July 2010 and data recording was completed on 20 November 2010. Restoration work and demobilization operations will continue until early December. During peak operations in October more than 1,200 people were employed on the project. The project has been completed within budget and slightly ahead of schedule. The survey area covers the northern extension of the prospective trend covered by the 118 km(2) 2009 Belait 3D seismic survey. The combined 3D seismic coverage of 255 km(2)covers approximately two-thirds of the Belait anticlinal trend, the major structural feature on Block M. Processing of the 3D seismic data is underway and early products are expected in March 2011. This will be followed by interpretation and mapping of the data to delineate prospects for potential drilling in 2011/2012.
KOV Borneo Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, has a 36% interest in Block M.
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