Jubilant Posts Test Results of Appraisal Well DDE-APP-1 in India

- Jubilant Posts Test Results of Appraisal Well DDE-APP-1 in India

Tuesday, August 09, 2011
Jubilant Energy N.V.

Jubilant announced the results of Appraisal Well DDE-APP-1 in the Deen Dayal East Field in the KG Block, which was spudded on the January 1, 2011.

The well was drilled by the operator (GSPC), with the objective of appraising the hydrocarbon bearing sands of the KG-16 discovery well and, in the process, to test the Cretaceous and Jurassic Rift Fill and younger sandstones that were found to be productive in other wells on the Deen Dayal structural complex. The well was drilled to 5,621 meters measured depth and encountered basement at 5,530 meters measured depth.

Two Drill Stem Tests ("DST") were undertaken after electric logging of the lower section of the well. DST-1 was undertaken in the rift fill section with perforation between 4,957 to 4,970 meters measured depth. This test flowed water at an average rate of 1500 bwpd and carbon dioxide ranging 20% to 28% was found in the well stream. DST-2A was undertaken in a shallower section with perforation between 4,774 to 4,786.5 meters measured depth and 4,789-4,799.5 meters measured depth. This flowed gas at 0.73 mmscfd with condensate at 60 bcpd from a 12/64 inch choke; 6% constant carbon dioxide was observed during the test.

The authorized cost to drill and test the well was approximately USD 75 million (USD 7.5 million net to Jubilant), the actual cost to date is approximately USD 69 million (USD 6.9 million net to Jubilant). The rig is currently waiting for a suitable weather window to move to the Well Head Platform.

Jubilant holds a 10% participating interest in this block through its subsidiary Jubilant Offshore Drilling Private Limited in India. Gujarat State Petroleum Corporation Limited, with an 80% participating interest, is the operator for the block. Geo Global Resources holds 10%.

Ajay Khandelwal, CEO of the Company commented, "The results of this well are not as expected and the operator is undertaking a full evaluation of the results. Any impact on 2C resources for DDE will be declared following a detailed evaluation by the operator and independent reserves consultants. Any evaluation will also take into account the possible upside of 2C resources from 20.5 square kilometer development area extension, as previously announced. Furthermore, the ongoing development of DDW (2P reserves area) is currently ahead of schedule with first gas expected in 2013."

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