SK Earthon Succeeds in Appraisal Well Drilling in Vietnam Block, Confirms Large Discovered Resource Potential

131 Meters of Oil-Bearing Layer Confirmed in Appraisal Well Drilling
Successful Test Production Achieves 6,000 Barrels Per Day

SK Earthon, the energy resource development subsidiary of SK Innovation, has succeeded in appraisal well drilling in a Vietnamese exploration block and has achieved test production of crude oil at a rate of up to 6,000 barrels per day.

Location description material of SK Earthon Vietnam concession area. SK Earthon

Murphy Oil Corporation, the operator of Vietnam Block 15-2/17, announced on January 7 that it had confirmed a total oil-bearing layer thickness of 131 meters and succeeded in producing high-quality light crude oil through appraisal well drilling at the Golden Sea Lion structure in the Vietnam 15-2/17 exploration block. Murphy and PVEP, the block operators, hold 40% and 35% stakes respectively, while SK Earthon holds a 25% stake.

The crude oil produced through this appraisal well was confirmed to be high-quality light crude oil with an API gravity of 37, which is low in impurities and easy to refine, just as it was during the exploration drilling in February of last year. API gravity, as defined by the American Petroleum Institute, is a measure of crude oil density (in API degrees) and is generally classified as light crude (API 34 degrees or higher), medium crude (API 33-30 degrees), or heavy crude (API 29 degrees or lower). Typically, crude oil with a higher API gravity and lower sulfur content is considered to have higher market value.

Murphy announced that, based on the results of this appraisal well drilling, it would raise the estimated discovered resource potential of the Golden Sea Lion structure. After the initial exploration well drilling in February of last year, the estimated discovered resource potential was between 170 million and 430 million barrels. However, the results of this appraisal well drilling indicate that the median value is now close to 430 million barrels, and the maximum value exceeds this figure. The expected maximum value will be further evaluated through detailed review and analysis. Murphy plans to conduct additional drilling within the year, together with its partners, to more accurately assess the size of the discovered resource potential and the commercial development feasibility.

SK Earthon has continued to achieve a series of resource development successes in Vietnam, following its discovery of oil in the Golden Hippo structure of Block 16-2-its first operated block in Vietnam-in November 2023, and additional oil discoveries in the Golden Sea Lion structure of Block 15-2/17 and the Red Camel structure of Block 15-1/05 in February and April of last year, respectively.

Myung Sung, CEO of SK Earthon, stated, "The success of this appraisal well drilling, following the successful exploration well drilling in February of last year, is a testament to the knowledge and expertise SK Earthon has accumulated in Vietnam. This year, SK Earthon will continue to achieve meaningful results in resource development in Southeast Asia through our clustering strategy."