Anzon Energy spuds S. Sumatra appraisal well

Australian independent oil, gas firm Anzon Energy Limited announced on Tuesday that the West Kruh-3 appraisal well in Kruh TAC onshore South Sumatra was spudded on 16 November 2006.

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 company said 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, and 92 feet net oil pay.

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. In the event that the appraisal is successful, the well will be completed as an oil producer.

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. Anzon Energy Indonesia holds a 90% interest in BRK and IPK. The remaining 10% is held by local investors. 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.(alex)