Kalrez? 1K-8 development well flows oil

Australian oil firm Kalrez Energy Limited said Wednesday that the fourth well in Kalrez's drilling program and the second development well on the Bula Tenggara structure, well 1K-8, has flowed 25 degree API gravity oil at 40 barrel of oil per day (BOPD) from a similar zone to that of the previous well 19K-6 which flowed 135 BOPD on test.

Kalrez said Well 1K-8 was spudded on September 6th 2001 and was drilled to a depth of 254.8 meters.

The well producing formation has been gravel packed and is currently producing approximately 40 barrels of oil per day at 40 percent water cut.

?Kalrez have forecast an initial production rate of 20 BOPD for each new development well drilled in the current drilling program for its financial modeling. The flow rate from both this well and the previously drilled well, 19K-6, has greatly exceeded the forecast flow rate,? said RJ Collins, Kalrez? director.

According to Collins, Well 19K-6, which flowed 135 BOPD during production testing, is scheduled to be gravel packed later this week. It is currently on stream at a reduced production rate until the gravel pack is completed. Then it will be put on full production.

The drilling rig had been moved to location 74K-2 which was the first well drilled in the program. Kalrez are deepening this well to the "150 meter sand" zone. Drilling commenced on the 25th September.

Completion of this well is anticipated to take 4 days and it is expected to be in production by the end of this month.

The rig is then scheduled to move to location 50K-6, which is a follow-up to the very successful producing well 49D-6 that has produced approximately 75,000 barrels of oil since it was completed in 1994.

Kalrez is the operator and 100 percent participant in Bula PSC, Maluku. (alex)