2nd rig tendered for Bengara-II 2007 drilling program

Dallas-based junior oil, gas exploration firm Continental Energy Corporation announced on Friday that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. has called for tenders to provide a second drilling rig to drill the third and fourth wells of the four planned wildcat exploration wells for this year on the Bengara-II PSC, onshore East Kalimantan.

Bid submission closes on the 18th of May and award of the drilling contract shortly is expected thereafter, said the company.

GeoPetro Exploration Manager in Jakarta, Drew Eriksson, said that the second rig was needed to carry out four-well drilling campaign for this year. He said GeoPetro had experienced more delays than originally expected due to difficulties with construction of access roads, and in particular bridges, in the swampy jungle of the Bengara-II Block."

The first rig, which has been secured earlier this year, is set to drill first well called the Seberaba-1, to a programmed total depth of 4,000 meters (13,120 feet). That rig is now on location and rigging up spudding date is expected before the end of April. The Seberaba-1 will take 75 to 90 days to drill and test. After that, the rig will be moved to drill our Punga-1 prospect to 3,800 meters (12,467 feet).

"We would expect the second rig to be on location in July to spud the first of two other wildcats, planned for our Apung-1 and Bekawas-1 prospects, each programmed to a total depth of about 2,100 meters (6,900 feet),? Eriksson said.

Continental holds an 18 percent interest in the block, while CNPCHK Limited (of Indonesia)and GeoPetro hold 70 percent and 12 percent interests, respectively. (alex)