Bogal well plugged, abandoned in Kenya

LION ENERGY PROVIDED an update on the CNOOC-operated Bogal-1 well on Block 9, Kenya. Preliminary testing on two potential gas pay zones has been completed, with only minimal flow of gas from each zone.

Analysis of the test results indicates that neither test was in communication with the extensive fracture network proven by the abundant fluid losses during drilling and the Formation Micro Imaging (FMI) log. The well has been plugged pending further analysis of the test results to determine the feasibility of an additional testing programme, which might include fracture and acid stimulation, due to potential wellbore damage during drilling.

John Nelson, President and CEO of Lion Energy, commented, "Despite not having definitive test results in the Bogal-1 well that could lead to commercial exploitation at this time, we have demonstrated that Block 9 is hydrocarbon bearing. Data acquired from this deep well will greatly contribute to identifying the hydrocarbon potential on a number of excellent oil and gas prone prospects remaining on Block 9, which remains a very attractive asset in our portfolio."

In other news in Kenya, seismic is currently being shot on Block 10BB. Once complete, the seismic crew and equipment will move to Block 10A. The seismic acquisition, processing and interpretation to follow are in preparation of the planned drill programme in the first half of 2011. Blocks 10BB and 10A are operated by Africa Oil Corp.



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