WISR Ord Shs V.WZR

RE:RE:RE:RE:RE:RE:Its a Steal

[42APIOil]

The first thing that everyone has to remember is that this well was drilled as much for information as it was for production potential.  MWD (Measurement while Drilling) and TD logging runs would've provided majority of information (uncontaminated by downhole water infiltration) they were looking for.  Testing is the icing on the cake, but it can be fickle due porosity, permeability (this is where the natural fractures figure in), or water infiltration issues.  The most important thing to take from the NR is "no significant impact to reserve estimates", which is what drove the price down over 40% on August 21st.    
If it was my money, my well, I'd plug and abandon the bottom section of well, above DST#4, but still inside intermediate casing.  At this point you can then cut a window through both casing strings and directionally drill horizontal well through Oligicene for proper production testing without risk of water contamination from below.  This could be drilled and completed for at least a 1/3 less capital than a new well, from scratch, such as proposed K4.   
As for your question about remediation of K3, its extremely expensive and time-consuming to perform remedial operations on lower, previously abandoned zones due to government abandonment commitments, such as permanent bridge plugs capped with several hundred meters of cement.  Cement is extremely alkali, and extremely expensive to treat with drilling mud while drilling out.  The best bet is....start again, uphole.