"This is by far the best producer of the four wells the joint venture has drilled and it confirms the viability of the Company's redevelopment project in the Lelyaki Oilfield. It also will add substantially to the Company's growing production and cash flow," Mr. Callaway said.
The Company also announced that exploration well No. 191 has been plugged and abandoned. This well was drilled to test the possible extension of the Lelyaki Oilfield to the northwest, across a major fault. Although the well encountered oil staining in the target P1 and P2 sands, the well produced only water on testing. Well No. 191 completes the Joint Venture's Exploration Drilling Commitment under the Field License Agreement.
Kashtan intends to proceed immediately with the drilling of two more development wells. Well No. 302 will commence in about one month using the rig that drilled No. 191. Well No. 305 is in advanced stages of drilling contract discussions. Also, the previously announced well-servicing program is ongoing and the planned workovers on shut-in wells are expected to begin in the next few weeks.
Kroes Energy is a junior oil and gas producer and explorer participating in the Lelyaki Oilfield redevelopment project in Ukraine, one of Eastern Europe's fastest growing economies. Kroes has a strong management team, with extensive international experience. Shares trade on the TSX Venture Exchange under the symbol KRS.
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