KOV commits to Phase 2 exploration program in Brunei Block L

Source: Kulczyk Oil Ventures Inc.

Kulczyk Oil Ventures Inc. is pleased to announce that Kulczyk Oil and its joint venture partners in Block L in Brunei Darussalam (Block L JV) have elected to proceed with the Phase 2 exploration program under the terms of the Block L production sharing agreement (Block L PSA). 

The Phase 2 exploration program is for a term of two years commencing August 28, 2010 and the minimum work obligations are: 

1. acquire and process not less than 500 kilometres of onshore 2D seismic
data and 500 kilometres of offshore 2D seismic data; 

2. acquire and process not less than 150 square kilometres of offshore 3D
seismic data; and 

3. drill at least two onshore exploration wells, each to a minimum depth of
2,000 metres. 

The Block L JV is obligated to expend a minimum of $16 million during Phase 2
.
Under the terms of the Block L PSA, the Block L JV was granted the right to explore for and, in the event of hydrocarbon discovery and subject to the approval of PetroleumBRUNEI, produce oil and natural gas from Block L. As a part of the Phase 1 exploration commitments the Block L JV has: (i) interpreted more than 1,500 kilometres of 2D seismic data; (ii) acquired 350 square kilometres of 3D seismic data; (iii) drilled the first exploration well at Lukut-1 (currently awaiting testing); (iv) acquired an aerial gravity/magnetic survey; and, (v) commissioned a geological study of the area. The second exploration well on Block L, being drilled as a part of the Phase 1 exploration program, is currently drilling at Lempuyang-1. 

"The decision to move forward with Phase 2 reflects our optimism about the potential of Block L. It is a large block within a prolific petroleum system with virtually no exploration work undertaken for decades prior to the award of the block in 2006. Opportunities like this are not common and we are excited about the potential of the area." said Jock Graham, Executive Vice President of Kulczyk Oil. 

The partners in Brunei Block L are Kulczyk Oil Brunei Limited (40%), AED South East Asia Limited (50%), and QAF Brunei Sdn Bhd (10%). Kulczyk Oil Brunei Limited is a wholly-owned subsidiary of Kulczyk Oil. 

Kulczyk Oil is an international upstream oil and gas exploration company with a diversified portfolio of projects in Brunei, Syria and Ukraine and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs