Kalrez commences drilling program at Bula PSC

Australian listed oil company Kalrez Energy Limited said on Friday it had commenced a two wells drilling program with the spudding of well 89-K-5 in the Bula Tenggara region of the Bula production sharing contract (PSC) block.

Kalrez said currently the well was at a depth of 60 meters and drilling was ahead to a planned total depth of 315 meters.

The two well program was an infill development of an existing field, and was anticipated to provide only incremental increases in production, targeting 20 to 30 barrels of oil per day (bopd) per well, Kalrez said.

The company said since the first production the Bula Tenggara region had produced approximately 2.43 million barrels of oil.

?Drilling and recompletions are essential to improve operating margins at Bula to insulate against oil price reductions,? Kalrez added.

Under the Kalrez-Pertamina agreements, Kalrez committed to drill 6 wells in 2003.

Bula PSC block is located in Seram Island, Maluku province. Kalrez is 100 percent interest holder and operator of the block. (robert)