'File 5/1 XIV Kuwait Oil Company' [‎261r] (531/570)

Major F. Holmes,
Mill Hill,
Sandon,
Chelmsford,
ESSEX.
Dear Major Holmes,
:ith reference to His Highness f letter to you dated
^4th 1 . 03 , I am instructed by Directors to request you to
transmit the following observations to His Highness.
At all times since the discovery of oil in Kuv/ait at
uurgan Ho. 1 well, Directors have been mindful of the
provisions of the Concession agreement relating to the
aeclaraoion that oil has been found in commercial quantities
and were anxious to make this declaration as soon as it was
justified by the information obtained from drilling.
^10 you are aware, Durgan Ho. 1 well wns regarded as
complete when it had penetrated only 18 feet into the oil
reservoir. This action was taken on the sound principle of
noc jeopardising a discovery well by further deepening at a
time when reservoir conditions are virtually unknown.
Burgan No. 2 well was then drilled and, having struck
oil, was carried to a considerably greater depth than No.l.
In order to obtain information on reservoir conditions,
0 pouroleum engineering examination was made promptly after
the discovery of oil in No, 2. Unfortunately, the examination
did no 0 provide the data which it had been hoped to obtain
because the shales above the oil horizon in No. 2 well
caved in and prevented tests being made in that well.
In many respects, the information provided by the
examination of No. 1 well was satisfactory but it was found
that, after the well had been flowed and then closed in,
recovering in bottom hole pressure was very slow. This