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Hansa Hydrocarbons update

Posted: 20 January 2009

Hansa Hydrocarbons Ltd reported that the drilling and evaluation of the Serica Energy operated Chablis appraisal well 48/16b-3/3z in the UK Southern North Sea, has been completed and provided an operational update.

Chablis Appraisal Well 48/16b-3 and 3z

Well 48/16b-3/3z is located two kilometers to the east of the Chablis gas discovery well 48/16b-2, drilled in 2002. The well was drilled to appraise the key subsurface uncertainties in the field, namely reservoir quality, gas saturation and column height.

Well 48/16b-3 had reached a depth of 6,580 ft true vertical depth below mean sea level (“TVDSS”) when operational difficulties required the lower section of the well to be re-drilled as sidetrack well 48/16b-3z. Well 48/16b-3z reached the planned total depth of 8,136 ft TVDSS on 12 January 2009.

Wireline logs were run and the results confirm that, as predicted, the reservoir quality and hydrocarbon saturation are markedly better in the current well than they were in the discovery well. The two wells also share a common gas-water contact, confirming continuity of the reservoir. The gas column encountered in this location was less than in the 48/16b-2 well.

The group will now complete its analysis of the results and assess the remaining potential of the Chablis field in both the un-drilled western part of the block and to the east where Chablis may extend into the adjoining block 48/17d, in which Hansa also holds an interest.

"We are encouraged with the results of this well, which confirms our technical view of the reservoir," said John Martin, Hansa Hydrocarbon’s CEO.

"We now need to evaluate the optimum way to further appraise the Chablis area prior to selecting the most appropriate development scheme."

The licensees of Blocks 48/16b and 48/17d are Hansa (35 per cent) and Serica Energy (65 per cent, operator). Hansa earned its interest in the blocks from Serica Energy under the terms of a farm-in agreement.




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