Canoro To Sidetrack Amguri 13

Canoro Resources Ltd. reports that after logging results on the Amguri 13 appraisal well, it is going to sidetrack the well. Amguri 13 is expected to expand the main Barail reservoir towards the eastern block boundary. A successful sidetrack should significantly increase the field's reserves and production potential, while setting up additional drilling locations.

The initial well drilled directionally in a southerly direction, came in 10 m lower than anticipated from seismic interpretation. Despite this, the well encountered a 3 meter zone immediately above the main sand showing hydrocarbon potential based on mud and log data. With these results, an open hole test was attempted, however open hole testing is difficult to achieve successfully and the company was unable to complete a successful test. A northerly sidetrack, beginning at approximately 1,460 m, is believed will achieve the original well objectives and demonstrate a geographical extension to the productive reservoir.

Les Kondratoff, Canoro's President and CEO commented that, "the well information shows hydrocarbon potential structurally down-dip of the main field. We need to fully evaluate this possibility, hence the sidetrack decision. This drilling campaign has the flexibility to allow us to optimize operational efficiency, while responding to new information."