Songa Mercur Fails to Find Significant Hydrocarbons Volumes at Ca Ngu-1

KrisEnergy Ltd. (KrisEnergy or the Company), an independent upstream oil and gas company, disclosed Tuesday that the Ca Ngu-1 exploration well in Block 120 offshore Vietnam has reached a total depth of 4,232 feet (1,290 meters) measured depth (MD), or 4,156 feet (1,267 meters) total vertical depth subsea (TVDSS).

The Ca Ngu-1 well commenced drilling Oct. 10. Water depth at the Ca Ngu-1 location is approximately 885 feet (270 meters). Wireline log data confirmed the presence of gas in Pliocene sandstone reservoirs, and a 49.8 foot (15.2 meter) gross hydrocarbon column within the Miocene carbonate reservoir, comprising a 34.7 foot (10.6 meter) gas column above a 15.7 foot (4.8 meter) 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 (mid-water semisub) 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 analyze 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 3,130 square miles (8,574 square kilometers) overlying the Quang Ngai Graben and the Tri Ton Horst where water depths range from 164 feet (50 meters) to 3,609 feet (1,100 meters). The graben connects the Song Hong and Qiongdongnan basins in the north to the Phu Khanh Basin in the south. KrisEnergy holds a 25 percent working interest in Block 120 and is partnered by Eni Vietnam B.V. as the operator with 50 percent working interest and Neon Energy (Song Hong) Pty Ltd with 25 percent.