Indago Successfully Tests West Bukha-2

Indago Petroleum, which operates in Oman and the UAE, reported that subsidiary Indago Oman Limited (IOL), as operator of Block 8, along with partners, Eagle Energy (Oman) Limited (10%) and LG International (50%), has commenced testing operations on the West Bukha-2A (WB2A) well.

The original wellbore, West Bukha-2, which penetrated the Shuaiba and Kharaib reservoirs of the Thamama in August, was subsequently sidetracked after the drill string parted while drilling. The wellbore was then renamed WB2A. WB2A was drilled to a depth of 4529m and plugged back to 4383m after electric wireline logs had been obtained.

The first flowing test was carried out on the uppermost Shuaiba section of the Thamama formation, over an open-hole interval from 4363m to 4383m (MDRKB). After acidization and an initial clean-up period the well flowed at a stable average rate of 3524 bbls/d of 42o API oil and 1.0 mmscf/d of gas for 6 hours on a choke size of 36/64" and flowing tubing pressure of 2512 psia. On opening the choke size to 50/64" the rate increased to an average of 4392 bbls/d oil and 1.4 mmscf/d of gas with a tubing pressure of 1711 psia measured over a period of 4 hours. Following the end of the flow period, the well will be shut-in for a pressure build-up survey.

Both the primary reservoir (Mishrif-Mauddud) and secondary target (Thamama) were encountered high to prognosis, which resulted in a longer hydrocarbon bearing interval in the Thamama than expected. However, the Shuaiba section of the Thamama has not previously formed part of Indago's reported, audited 2P reserve estimates.

Flow rates of up to 13.6 MMscf/d and 2910 bbls/d of condensate have previously been obtained in the Mishrif formation, which lies above the Thamama, in the 1976 discovery well. Following the testing of the Thamama, Indago and their partners plan to conduct a second flow in the Mishrif-Mauddud, which will be the subject of a later release.

Peter Sadler, CEO of Indago Petroleum commented:

"We are delighted to have demonstrated such strong oil flow rates from a reservoir that has yet to be assigned commercial reserves in this field. We are also very pleased, based on log data, to have successfully penetrated, but not yet flowed the primary target. This new information will be utilized in our field development planning which is targeting first production in 1Q 2008. In addition we hope further testing will increase reserves on our balance sheet."

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