Oilex Drills Ahead in Sidetrack Hole at Lolotoe-1

Songa Mercur
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Oilex has advised that the Lolotoe-1 well was at a depth of 2,552 metres on January 6, and was drilling ahead in the sidetrack hole. The section from 2,491 meters to approximately 3,750 meters is being redrilled following extensive caving of the original borehole. On reaching the casing point, 9 5/8" casing will be run before drilling the primary objective Elang/Plover Formation sandstones.

Drilled by the Songa Mercur semisub, the Lolotoe-1 well is the second well of a 2 well program in the Timor Sea contract area JPDA 06-103.

The Lolotoe prospect is a robust 3 way dip faulted anticline having about 300 meters of vertical relief. The well is targeting a mean prospective oil resource of 90 million barrels (100% basis) in the primary objective Elang/Plover formations. The geological horizons have been encountered as predicted, or slightly higher than predicted. No information on the primary objective Elang/Plover Formation has been obtained to date.

The Elang/Plover Formation primary objective will be evaluated by a full suite of data including, as appropriate, mud log, real time drilling data and wire line logs after the well reaches total depth to determine presence of hydrocarbons.

Since the last report further delays were experienced with cementing and sidetrack operations and the anticipated time from spud to total depth is now about 30 days.

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