On May 29, 2006, the Company completed an initial perforation of the Kuru #2 well at 980-990 feet. The well flowed a maximum of 938 Mcfd and associated water at this depth. After initial testing at this depth, a bridge plug was set at 972 feet to stem water flow.
On June 11, 2006, the well was perforated again from 958 to 968 feet and began flowing dry gas from the newly perforated zone. The initial flow rate was 1.378 MMcfd.
The flow rate from the well has been increasing since the perforation was conducted. From June 12, 2006 to June 15, 2006, the well flowed dry gas at a rate from 1.4785 MMcfd through a 1.5 inch choke, steadily increasing to a flow rate of 6.6 MMcfd through a 1.75 inch choke.
The Company intends to flow the well through a 2.0 inch choke until surface pressure and flow rate are stable. The well will then be briefly shut in to record bottom hole pressure. Once surface and bottom hole pressures are stable, the Company will conduct a 10 day flow test to assist in establishing reserve calculations.
Garth Braun, President and CEO of the Company, stated, "The initial and increasing gas flow rates for the Kuru #2 well are very encouraging. We look forward to announcing the 10 day flow test results of the Kuru #2 well as soon as they are available."
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