Harvest Begins Drilling in Oman, Logs Indonesian Well

Harvest Natural Resources provided an update Friday on its exploration drilling operations regarding its Qarn Alam Block 64 located onshore Oman and its Indonesia Budong-Budong Block located onshore West Sulawesi.

Oman Block 64 EPSA

Harvest announced today commencement of drilling operations of the Al Ghubar North–A (AGN-A) exploration well on the Qarn Alam Block 64, onshore Oman. This is the second of a two-well exploratory program utilizing the MB Petroleum Services LLC Rig #113 drilling unit.

The AGN-A well will test the Al Ghubar North structure, which is a large salt-supported high with stacked reservoir targets in the Barik, Miqrat and Amin reservoirs. The targets are 10 miles to the east and updip from the producing Barik field. Mean prospective resources of 960 Bcf of gas and 54 MMbbls of condensate in the Barik and 241 Bcf of gas in the Miqrat formation have been calculated by Harvest. The geological chance of success for a discovery in this well is estimated by Harvest to be 23 percent. The AGN-A well will be drilled to a total vertical depth of approximately 10,300 feet to test coincident fault bounded dip closure at all three reservoir levels. Dry hole cost for the AGN-A well is $8.1 million.

Harvest has an 80 percent interest in Block 64 onshore Oman. Block 64 has an area of 3,874 square kilometers and was extracted from a pre-existing block (PDO's Block 6) to accelerate exploration for gas and gas condensate by the Omani Ministry of Oil and Gas.

Indonesia - Budong-Budong Block, West Sulawesi

Harvest also announced today the KD-1 exploration well, which spud on June 20, 2011, drilled onshore Sulawesi, has reached a total depth of 14,437 feet measured depth (13,576 feet true vertical depth). The well is currently being logged and evaluated.

The KD-1 well is the second of two planned exploration wells located in the Budong-Budong Block onshore West Sulawesi. Harvest owns a 64.4 percent non-operated working interest in the Budong-Budong Block PSC.


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