Capitalinc plans $56m expenditure to develop blocks
Tuesday, November 23 2010 - 01:29 AM WIB
IDX-listed firm PT Capitalinc Investment Tbk, which is in the process of changing main business from finance to oil, gas will spend US$56 million next year to support its expansion.
CEO Ong Seng Hoo was quoted by media as saying that the company will spend $53 million to drill 14 wells and to build infrastructure and the remaining $3million for working capital.
The 2011 drilling program would include 8 wells at Ibul Block, two wells at Air Komering, both are located onshore South Sumatra, 3 wells at Seinangka-Senipah block in East Kalimantan and 1 well at Tonga block, North Sumatra.
The company is aiming to achieve production of 600,000 barrels in 2011 and tripling into 1.8 million barrels the following year.
Ong said the company is in talks with several foreign banks to raise funds to finance next year's expenditure.(*)