Kufpec, Kalrez spud Lola Kecil exploration well

Kuwait oil firm Kufpec had spudded Lola Kecil exploration well on the island of Seram on April 5, 2002, according to joint venture partner Kalrez Energy Limited Monday.

Lola Kecil will be the 4th deep exploration well to be drilled on Seram and the first since the major discovery in the Jurassic Manusela carbonate at the nearby Oseil oilfield, said Kalrez.

Kufpec have estimated that the Lola Kecil reservoir contains reserves of oil in place of 110 MMBO, and have calculated the well as having a high Probability of Success at greater than 40 percent.

The Lola Kecil well will target the Manusela carbonate in what is interpreted to be a thrusted anticline directly updip from the Oseil structure.

Proposed total depth is 7,200 feet, with the top of the reservoir anticipated to be at 4,450 feet. The top of the reservoir should be reached in approximately 30 days from the spud date, with total drilling time of 45 days.

The Lola Kecil prospect lies between the Seram coastline and the Oseil development, which is currently under construction.Consequently it is within 5 kilometres of the pipeline built to carry Oseil crude from the Oseil field to a Production Facility on the coast.

A mini refinery at the production facility will process Oseil crude into Naphtha and High Sulphur Fuel Oil prior to shipping to existing markets in Singapore.

The pipeline already contains a T-piece to allow for a rapid tie in of Lola Kecil crude in the event that the Lola Kecil exploration well is successful. This will allow Lola Kecil to be brought into production quickly and with minimal cost. With exploration success Kufpec anticipate production from Lola Kecil by the end of 2002.

The Seram Joint Ventures' Oseil oil field is currently being readied for production with first crude scheduled to flow in July 2002. Production from Oseil (without Lola Kecil) is conservatively estimated to commence at 12,000 bopd from three wells.

As part of the preparation of Oseil for production Rig 482 owned by the Kalrez oil services company is mobilising to complete Oseil Wells I & IV over the next three months, providing a positive cash outcome for Kalrez. Exploration success at Lola Kecil is likely to result in further well completion and drilling work for Rig 482.

Kufpec holds 97.5 percent working interst in Seram Non-Bula block, while Kalrez holds the remaining 2.5 percent. (alex)