Kriti Exploration to Begin Operations at Lake Long Field

The operator of the Lake Long Field, Kriti Exploration Inc, has advised First Australia Resources that Parker Rig 55-B has mobilized from its present location in the Galveston Bay area to Inland Waters Louisiana State Lease 328 (Lake Long) and is likely to rig up over this coming weekend.

The barge rig will be used to drill the SL 328 #1 well, a proposed 15,500 foot true vertical depth test of the Lake Long Deep Prospect. The well will be operated by Palace Operation Company, of Tulsa, Oklahoma under a turnkey contract with Applied Drilling Technology Inc, a GlobalSantaFe Company.

The proposed deep test well will be directionally drilled to test the deep Cib. Op. interval. The well has also been designed to evaluate shallower objectives at the 6900 Sand, Krumbhaar and Upper, Middle and Lower Hollywood intervals. The well is likely to take between 70 and 90 days.

Based on the Kent Bayou Field analogue, sand pay thicknesses exceeding 500 feet are possible at the Cib. Op. interval at Lake Long. The field operator, Kriti Exploration Inc has estimated the potential reserves of the prospect to be in the order of 766 billion cubic feet of gas equivalent.

With Henry Hub gas prices at US$5.95 per thousand cubic feet, a prospect of this magnitude has the potential to generate a significant future cash flow stream with a meaningful impact on a company the size of FAR.