Anadarko drills first well with Medco

US independent oil firm Anadarko petroleum said on Monday it had commenced the drilling of the first well under the exploration joint venture agreement with JSX-listed oil firm Medco Energi Internasional.

The company said the Sesayap-1 well in Simenggaris Block onshore East Kalimantan was spudded during the fourth quarter of 2005.

According to the report of one of Simenggaris partners, the Sesayap-1 well was drilled to the total depth of 6,025 ft and temporarily suspended.

Anadarko in July 2005 signed an exploration joint venture agreement with Medco, under which Anadarko is gaining access to Medco's 13 blocks onshore and offshore Sumatra, Kalimantan, Sulawesi, Java and Papua. Anadarko has committed to a three-year work program to fund wildcat exploration activities at a cost of U.S. $80 million in return for opportunity to earn up to a 40 percent interest in each PSC where a successful exploration well is drilled.

The company said it, together with Medco has received approval to acquire more seismic date in 2006, including the 2 Sparse 3D survey with a combined areas of over 250sqm, the first-ever application of this technology in Indonesia, and over 600 miles of 2D data.

Anadarko is also preparing to drill 2 wells in North East Madura III block offshore East Java where it has 100 percent working interest, in 2006, with the first well expected to spud in the second quarter.(alex)