Kalrez starts drilling at Bula Field

Australian listed oil and gas company Kalrez Energy Limited reported on Monday that ?The Kalrez Contract Drilling Rig? had arrived at the Bula Field on the 29th June 2001 and had been unloaded and moved to the first location for the drilling of development well 81K-4.

According to the company?s statement, Well 81K-4 is the first well in the 2 year drilling development program being undertaken within the Bula Oilfield. Rig-up of the Drilling Rig is expected to take approximately 7 - 10 days. Drilling and completion of this well is expected to take 12-14 days from Rig-up and then the rig will be moved to the second location 72K-4.

These initial two wells are infill development wells within the Bula Lemun oilfield. Within the Bula Block Kalrez will be utilizing new completion techniques that it believes will result in improved production rates from this shallow producing zone.

The Drilling Rig will also be utilized to drill Kalrez's four sole risk wells to the South of the Bula Field within the Seram Joint Venture area. These 4 prospects to be drilled contain cumulative Mean Reserves of 12.30 MMBO. It is intended to drill these 4 wells in the last quarter of 2001.

Earlier, Kalrez said it would proceed with its plan of drilling 25 new oil wells and working over 50 existing oil wells.

Bula, located in the Seram production-sharing contract (PSC) on the Seram island, Maluku, is wholly owned by Kalrez, which bought out the fields from Australian firm Santos in 1999. (alex)