KrisEnergy Assesses Lengo's Commercial Vitality

AWE Limited, a partner in the Bulu PSC, announced that drilling and a testing program at the Lengo-2 gas appraisal well offshore East Java, Indonesia was completed. The well was plugged and abandoned and the rig Randolph Yost (300' ILC) was released.

Lengo-2 reached a total depth of 2,748 feet and as previously reported, two separate drill stem tests (DST) were completed. Gas samples have been sent for laboratory analysis, according to AWE.

The first DST tested the upper part of the Kujung I formation, flowing gas at a rate of 4.5 million standard cubic feet per day (MMscf/d). The second DST was conducted over the lower part of the Kujung I formation interval achieving a maximum gas flow rate of 21.2 MMcf/d. This test was limited by surface equipment and a wireline logging program was completed over this interval. It is estimated about 138 feet of core was cut and retrieved from the Kujung I carbonate reservoir in Lengo-2.

"The flow rates of the two DSTs at Lengo-2, combined with a gas flow of 12.8 MMscf/d achieved in the Lengo-1 well in 2008 gives the joint venture a strong base from which to evaluate the future commercial development potential of the Lengo field," said Bruce Clement, AWE's managing director.

In March 2008, the Lengo-1 well reached a total depth of 3,264 feet. The well was tested and confirmed a small gas discovery. Two years later, it was announced appraisal drilling would commence on the Lengo-2 well to determine if the field's commercial success. Thus far, the findings encountered in the well are promising and the well looks to be commercially viable.

The Bulu PSC joint venture partners include KrisEnergy (42.5%) as operator, AWE Limited (42.5%), PT Satira Energindo (10%) and PT Wijaya Kusuma (5%).


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