Polyard Petroleum (stock code: 8011) provides the following information on the Mawar-1 and Markisa-1 exploration wells in Block M, onshore Brunei Darussalam.

Location
Block M covers an area of approximately 3,011 km2 in the Baram Delta Basin and is the largest onshore permit in Brunei. The Block contains the Belait oil and gas field, but is under-explored having not seen a concerted exploration effort during the past 20 years.

Progress
Block M operator Tap Oil Limited advises Markisa-1 exploration well in Block M, onshore Brunei Darussalam has encountered good oil shows and a possible 29m oil column in the Ridan sand formation. Markisa-1 has reached a total depth of 1,300m measured depth and wireline logging operations are in progress. Wireline sampling and side wall coring is ongoing and is expected to be completed on the Markisa-1 well in the next 24 hours.

Results
Markisa-1 encountered good oil shows while drilling through the Ridan sands from approximately 1,070m to 1,100m (29m true vertical thickness) with preliminary wireline logs indicating a possible oil column over this horizon. It was not possible to recover any fluid samples from this interval.

Block M operator Tap Chief Executive Officer Peter Stickland said the presence of oil in the Markisa-1 well is a positive result."The good oil shows and possible oil column in the Ridan sand are an encouraging outcome at Markisa-1,” Mr Stickland said."Further evaluation will be required to determine the appropriate next steps to understand the reservoir quality and establish whether the reservoir is productive. Only then will we be able to assess the volumetric implications of what Markisa-1 has encountered,” he said.

Oil in Block M can be rapidly commercialised due to close proximity to processing and export facilities even in the case of relatively modest quantities.”"Markisa-1 results provide solid support for our ongoing efforts in Brunei and we look forward to further evaluation and exploration drilling in Block M in the near future.”

Updated：2010-10-13