Rig: KS Java Star

Indonesia Sakti exploration well reaches total depth

KrisEnergy Ltd. (“KrisEnergy” or “the “Company”), an independent upstream oil and gas company, announces that it has completed drilling of the Mustika-1 exploration well in the Sakti production sharing contract (“PSC”) in the East Java Sea. Mustika-1 was drilled to a total measured depth of 2,768 feet (844 metres), or 2,667 feet total vertical depth subsea, and encountered gas in the Tuban and Kujung I formations. Initial indications from wireline logs are that the gases have a high carbon dioxide content and therefore are likely to be below the economic threshold for a commercial discovery. The well will be plugged and abandoned and a detailed analysis of the well data and gas samples will be undertaken to review the remaining prospects and leads in the Sakti PSC. Chris Gibson-Robinson, Director Exploration & Production, commented: “This is our final exploration well for 2015 with the first five being drilled in the Gulf of Thailand, all of which were successful. The first four wells resulted in the recently approved plan of development for the Rossukon field." KrisEnergy was awarded the Sakti PSC in February 2014. The block covers 4,974 sq. km in the East Java Sea over the western margin of the East Java Basin, Bawean Arch and the Muriah Trough. KrisEnergy is also the operator of the Bulu PSC, which is adjacent to the Sakti PSC and contains the Lengo gas discovery for which the Company received approval for its plan of development in December 2014. Front-end engineering design for the Lengo development was completed in the third quarter of 2015. Gas sales negotiations are ongoing and preparations are underway to tender the contract for engineering, procurement, construction and installation.

KrisEnergy kicks off Sakti exploration well in East Java Sea

– KrisEnergy Ltd. (“KrisEnergy” or “the “Company”), an independent upstream oil and gas company, announces that the KS Java Star jack-up rig has commenced drilling of the Mustika-1 exploration well in the KrisEnergy-operated Sakti production sharing contract (“PSC”). Drilling is expected to take approximately 20 days. Mustika-1, which is targeting the Kujung I formation, is planned to reach a total measured depth at 3,100 feet (945 metres), or 3,000 feet total vertical depth subsea. The location of the well is based on the interpretation of the 1,202 km 2D and 401 sq. km 3D seismic data acquired by the Company in 2014. KrisEnergy is also the operator of the Bulu PSC, which is adjacent to the Sakti PSC and contains the Lengo gas discovery for which the Company received approval for its plan of development in December 2014. Chris Gibson-Robinson, Director Exploration & Production, said: “The decision to drill Mustika-1 at this time comes as we are finalising project details for the Lengo development. This prospect is 10 km west of Lengo and, if successful, we would look at producing Sakti gas through the Lengo facilities.” Front-end engineering design for the Lengo development was completed in the third quarter of 2015. Gas sales negotiations are ongoing and preparations are underway to tender the contract for engineering, procurement, construction and installation. KrisEnergy was awarded as the operator a 95% working interest in the Sakti PSC in February 2014. The block covers 4,974 sq. km in the East Java Sea over the western margin of the East Java Basin, Bawean Arch and the Muriah Trough. Golden Heaven Jaya Ltd. holds the remaining 5% working interest.

'KS Java Star' contract terminated

KS Energy Ltd. has announced that the contract awarded to its KS Java Star jackup rig on the 6th March 2015 with a value of USD7.2 million has now been cancelled. The contract was cancelled following various meetings with the client, and their request to delay the beginning of the contract. The client chose to terminate the contract as both parties were unable to agree upon a new contract start date.

'KS Java Star' awarded short term contract in Indonesia

KS Energy Limited (“KS Energy”) has announced that PT Atlantic Oilfield Services, a subsidiary of KS Drilling Pte. Ltd (“KS Drilling”) and its joint venture partner Pertamina Drilling services, has been awarded a contract for the KS Java Star jackup rig. The contract which is expected to begin this month is with an as yet unnamed client and is anticipated to be worth USD7.2 million. The exact length of the contract was not released by KS Energy.

Pertamina extends contract for 'KS Java Star'

Pertamina Drilling Services Indonesia has notified KS Drilling Pte Ltd (KS Drilling) of its intention to exercise the 1 year option in its current drilling contract for the ‘KS Java Star’ jackup rig. The yearlong option is part of the contract agreed upon by Pertamina and KS Drilling on the 24th August 2012 and means that the ‘KS Java Star’ rig will now be drilling on the West Madura oilfield in Indonesia until January 2015. The contract extension is valued at US$41 million.