Jura reported that the Kandra 4D exploration well has been suspended. The Weatherford drilling rig has been released and will be mobilized to the Badin IV North block for drilling of the Jamali Deep well, which is expected to commence prior to the end of the year.
The Kandra 4D well was drilled to a total depth of 2229 m. The well targeted three potential hydrocarbon-bearing zones, the Sui Main Limestone (600-750 m), the Lower Goru (1700-2000 m), and the Chiltan Limestone (2150-2250 m).
On November 26, 2008, Jura announced that natural gas shows were encountered during initial testing of the Chiltan Limestone zone. The Chiltan zone was acidized, which resulted in the production of water. The decision was then taken to plug off the Chiltan zone, and move uphole to commence testing of the Lower Goru, the primary target of the Kandra 4D well.
Natural gas shows were also encountered during testing of the Lower Goru zone. There was an initial flaring of natural gas after which the well produced water, the source of which has yet to be confirmed. Data from well logs and tests will be forwarded to independent engineering consultants for analysis. Further actions on the well will be taken after evaluation of these results by Jura and its partners. The data from well logs was consistent with Jura's current interpretation of the Kandra Sui Main Limestone natural gas reservoir, which may be tested at a later date.
As previously announced, the Company and its partners will also consider a second Kandra well targeting the Chiltan Limestone zone, as seismic mapping indicates considerable potential.
Jura also announced that Petroleum Exploration (Pvt) Ltd., the operator of its concessions in Pakistan, has entered into an agreement with Oil and Gas Engineering Company, SPA, for the provision of a 2000 hp drilling rig. The rig will be mobilized to the Mirpur Mathelo concession for drilling of the Rafay 1 prospect, which is expected to commence prior to the end of the year.
It was also disclosed that all formalities related to the farmout agreement announced September 30, 2008 had been completed and that the transaction was fully closed.
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