Anzon Spuds West Kruh-3 in Indonesia

Anzon Energy Limited (Anzon) spudded the West Kruh-3 appraisal well in South Sumatra province, Indonesia on November 16. The well is located approximately 5 km southwest of North Kruh Field and 3 km west of Kruh Field. The well is 0.5 km east-southeast from the West Kruh-2A well, where Anzon discovered a new oil accumulation in December 2005.

The West Kruh structure is mapped on the downthrown side of a major normal fault. Stanvac attempted to drill the prospect twice in 1974 but was unsuccessful losing both wells WK-1 and 1A. West Kruh-2A successfully drilled the prospect and encountered hydrocarbons in the Talang Akar and Benakat Formations. The well reached a total depth of 6,135 feet measured depth in Pre-Tertiary metasediments but due to operational problems the interval below 4,739 feet could not be evaluated.

Electric logs indicated the possibility of up to 148 feet net pay in West Kruh-2A well comprising a total of 56 feet net gas pay (24 feet in Talang Akar and 32 feet in Middle Benakat), and 92 feet net oil pay in 4 zones in Upper, Middle and Lower Benakat Sandstones. The Lower part of the Benakat Middle Sandstone (4,458-73 feet measured depth) initially tested 140 barrels of oil per day with no water and was completed for production. However, this rate rapidly declined as a consequence of poor isolation of the reservoir zone. The West Kruh-3 well will appraise the reservoirs observed in West Kruh-2A. Subject to drilling conditions the well will be drilled to a total depth of 5,400 feet to penetrate the top Pre-Tertiary section. In the event that the appraisal is successful, the well will be completed as an oil producer.

Anzon's interests in Indonesia are located onshore in the South Sumatra Basin. Anzon Energy Indonesia's subsidiaries, PT. Binatek Reka Kruh (BRK) & PT. Indama Putera Kayapratama (IPK), have entered into Technical Assistance Contracts (TAC) with Pertamina for the Kruh and Kaya contract areas, respectively. The TAC areas are located approximately 65 km northwest of the town of Prabamulih in South Sumatra Province where significant oil fields have been found. Anzon Energy Indonesia holds a 90% interest in BRK and IPK. The remaining 10% is held by local investors, common to both TACs. Anzon, via its controlled subsidiaries is the operator of both TACs.

The Kruh TAC covers an area of 258 sq km and contains the Kruh and North Kruh fields as well as oil field infrastructure. The Kruh field was discovered in 1941 and produced a total of 1.45 million barrels from 1948 until it was abandoned in 1959. The North Kruh field was discovered in 1979 and produced briefly during 1983. Anzon re-established production at the North Kruh field in 2002 by working over and reactivating two wells and drilling two infill wells. The North Kruh field is currently producing approximately 75 bbls/day. Ten early exploration wells were drilled on the Kruh TAC in the 1930s-1950s, seven of which encountered hydrocarbon shows.