Shelf Clinches Contract from KrisEnergy to Drill in the Gulf of Thailand

KrisEnergy Ltd. (KrisEnergy or the Company), an independent upstream oil and gas company, announced Tuesday it has contracted the Key Gibraltar (300' ILC) jackup for development, appraisal and exploration drilling in two licenses in the Gulf of Thailand. The contract with Shelf Drilling (Southeast Asia) Limited, will commence around Jan. 1, 2015 and will run for a firm 6-month term with an option to extend for an additional 2 months.

The drilling program is anticipated to comprise 12-14 development wells in G10/48 where the Company is developing the Wassana oil field, together with several exploration wells in the contract area. Once the G10/48 drilling program is concluded, the Key Gibraltar will mobilize to G6/48 to the north, where KrisEnergy is also the operator, and undertake appraisal drilling in the Rossukon area where oil was discovered in 2009.

Chris Gibson-Robinson, director Exploration & Production, commented: “Securing the Key Gibraltar is a critical step in the Wassana development schedule and means that we are on target to deliver first oil production in the second half of 2015. Given the Wassana development drilling program, we have decided to coordinate the timing of exploration and appraisal drilling in G10/48 and G6/48, respectively, in order to optimize our drilling operations and costs.”

KrisEnergy holds 100 percent working interest in G10/48, which covers 1,813 square miles (4,696 square kilometers) over the southern section of the Pattani Basin in water depths up to 196 feet (60 meters). The license contains 3 oil discoveries - Wassana, Niramai and Mayura - in various stages of development or appraisal.

G6/48 covers 218.5 square miles (566 square kilometers) over the Karawake Basin on the southern margin of the Pattani Basin and the northwest margin of the Malay Basin in water depths of up to 246 feet (75 meters).