Kairiki Energy Limited (ASX:KIK) Tindalo Production Update
Kairiki Energy Limited (ASX:KIK) Tindalo Production Update
Perth, June 15, 2010 AEST (ABN Newswire) - Kairiki Energy Limited (ASX:KIK) (PINK:KAIRF) has been advised by Nido Petroleum Limited (ASX:NDO), the Operator of SC54A, of the following production information relating to the Tindalo-1 Extended Well Test (EWT) for the period through to 14th June 2010.

The cumulative production as measured in the FSO from the commencement of testing on 30th May 2010 to 00.00 hours on 14th June 2010 is as follows

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Gross Fluid produced     62,092 bbls
Oil produced             56,708 bbls
Water produced            5,384 bbls
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- Production rates have been varied by the Operator during this period to obtain data for reservoir management purposes. The field is currently being produced at a restricted gross fluid rate of approximately 5,000 - 6,000 bbls/day as the production processing system is not yet fully operational.

- Final commissioning of the production processing system involves the installation and testing of the oil-in-water metering. Once in place, produced water can be separated from oil and the oil then exported to the FSO. Commissioning is expected in the coming days thereby allowing the well to be operated at its optimal production rate thereafter.

- Samples of recovered water are currently being analysed to determine its origin (that is, water introduced during the drilling and completion process or formation water), and the Operator has advised that it will be providing updates on the EWT in due course.

Background

Kairiki Energy is an Australian Based junior international oil and gas exploration and production company focussed on the Philippines. Kairiki holds a 30.1% interest in Service Contract 54A and a 40% interest in Service Contract 54B.

SC 54A measures 862 km2 and contains the Tindalo, Yakal, Nido 1X1 and Signal Head oil discoveries and a substantial portfolio of similar low-risk reefal prospects. In December 2009, Kairiki announced that the SC 54A Joint Venture had approved the development of the Tindalo field with first oil expected in 2Q 2010 and an expected initial oil production rate of between 7,000-15,000 barrels of oil per day (2,450 - 5,250 bopd net to Kairiki.) The Tindalo development utilises a jack-up rig and a dynamically positioned storage vessel and is now in production. Based on a successful development at Tindalo a number of follow-up developments may be considered in SC 54A.

SC 54B measures 3184 km2 and contains the Gindara prospect which has a mean unrisked oil in place volume estimated by the Operator, of 634 million barrels. The Gindara prospect is a very large simple four-way closure at the Top Nido Limestone reservoir objective with an areal extent of 28 km2, a vertical closure of over 300m and is well located to receive hydrocarbon charge from the Palawan Trough. Kairiki is seeking to farm down its interest in SC 54B to accelerate drilling of the Gindara prospect.

About Kairiki Energy Limited

Kairiki Energy Limited (ASX:KIK)(PINK:KAIRF) is an Australian Based junior international oil and gas exploration and production company focussed on the Philippines. Kairiki holds a 30.1% interest in Service Contract 54A and a 40% interest in Service Contract 54B.

SC 54A measures 862 km2 and contains the Tindalo, Yakal, Nido 1X1 and Signal Head oil discoveries as well as a substantial portfolio of similar low-risk reefal prospects. In December 2009, Kairiki announced that the SC 54A Joint Venture had approved the development of the Tindalo field. The Tindalo development utilises a jack-up rig and a dynamically positioned storage vessel. Following a short project execution period, the Tindalo development tested oil at 18,689 bbls/d at the end of May 2010. Since that time, unexpected early water ingress to the well has resulted in the SC 54A Joint Venture preparing for a well re-entry and remediation programme to reduce or eliminate the water production. Based on a successful development at Tindalo a number of follow-up developments may be considered in SC 54A.

SC 54B measures 3184 km2 and contains the Gindara prospect which has a mean unrisked oil in place volume estimated by the Operator, of 634 million barrels. The Gindara prospect is a very large simple four-way closure at the Top Nido Limestone reservoir objective with an areal extent of 28 km2, a vertical closure of over 300m and is well located to receive hydrocarbon charge from the Palawan Trough. Kairiki is seeking to farm down its interest in SC 54B to accelerate drilling of the Gindara prospect.

 


Contact

Dr. Mark Fenton
Managing Director
Kairiki Energy Limited
Tel: +61-8-9388-6711
www.kairikienergy.com



Related Companies

Nido Petroleum Limited        
Kairiki Energy Limited       

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