Kalrez to raise fund to finance Maluku drilling and development program

Australian listed oil explorer Kalrez Energy Limited would issue 140 million new shares at 1.5 Australian cents per share to raise A $ 2,100,000. The placement offer, which is opens on November 21 2001 will be closed January 31 next year.

The company said on Wednesday the proceed would be used to assist financing the company?s drilling program at Bula production sharing contract (PSC), to finance company?s contribution to bring the Seram PSC into production; and to drill four sole risk wells in Seram PSC. Both Bula and Seram PSC areas are located in Seram island, Maluku.

Kalrez? chairman HS Majteles said the company is continuing drilling and work over program on the Bula field, which would be able to increase production from the field to over 1,000 barrels per day (BPD) and possibly up to 1,200 BPD

The company?s current production was approximately 550 BPD

In addition the company planned to drill 4 shallow development wells in the Seram Block, in an area with unrisked reserves of 12 - 13 million barrels of oil.

Kalrez is the operator and 100 percent interest holder of Bula PSC and has 2.5 percent interest in Seram (non-Bula) PSC. (alex)