Perth, Oct 23, 2008 AEST (ABN Newswire) - Kairiki Energy Limited (ASX:KIK) is pleased to announce that Tindalo-1, the second well in the 2008 shallow water exploration program, is another oil discovery, making it two for two. Service Contract 54 ("SC 54") is located in the NW Palawan Basin, offshore the Philippines.
Analysis of the wireline log and/or drilling shows data indicates an oil column at the Tindalo-1 well location of at least 134 metres, comparing favourably to the 78-93 metre oil column discovered in the previous Yakal-1 well.
Mr Laurie Brown, Kairiki's Director said "our back to back discoveries provide us with the platform to move forward to exploit the resource potential of our SC 54 inboard play and to assess the development options to optimally monetise this resource. Our initial technical assessment of the Yakal and Tindalo structures shows that each have significant "vuggy" porosity developed within the reservoir, with some of these oil-filled vugs (or holes) measuring up to 35 centimetres in diameter. The combination of the vuggy porosity and substantial oil columns bodes well for high deliverability and the potential for commerciality."
"These discoveries are an exciting start to the exploitation of our SC 54 inventory. The selection of Yakal and Tindalo as the first two targets was crucial to kick-start our strategy to pursue low-risk, rapidly monetisable reserves in the shallow water. The Joint Venture has identified a further 20+ potential targets, all defined by 3D seismic."
Kairiki's Managing Director, Mr Craig Gumley also commented "We are delighted that our first drilling campaign has been so successful. Once the technical work is undertaken over the coming weeks to better understand the resource size of these discoveries, and the impact on the remaining exploration portfolio, the Joint Venture will develop a forward program to maximise value from the SC 54 shallow water. Any future development is likely to include an extended well test through a production facility, potentially with Tindalo and Yakal tied back into the same facility."
Contact
Craig Gumley
Managing Director
TEL: +61-8-9388-6711
Laurie Brown
Exploration Director
TEL: +61-8-9388-6711
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