CityView to commence East Java drilling in July
Friday, May 25 2001 - 06:30 AM WIB
Australian listed oil and gas explorer CityView Corporation Limited announced Thursday that the company and its partner local oil and gas company PT Medco Energy Corporation Tbk (Medco) expected to commence drilling operations in East Java in July this year.
Initially, said the statement, the drilling would start at Sebaya and Karasan target areas within the Madura Block, followed by drilling of the Pidawan prospect in the Simenggaris Block.
The statement went on to say that the first well to be drilled at Sebaya would be to the relatively shallow depth of 1,230 meters, which Medco estimated should contain approximately 50 million barrels of recoverable oil from two separate formations.
The next well at Karasan had an estimated recoverable gas resource of 389 billion cubic feet according to Medco.
The drilling of the Pidawan prospect would test for oil and gas in a proven oil producing area with Medco having estimated recoverable reserves for the prospect of 52 million barrels of oil and 91 billion cubic feet of gas. The target depth would be 2,300 metres on trend with the Half Graben Area, which contains the Bangkudulis and Sembakung discoveries and the successful proving of the estimated reserves should yield CityView in excess of US$14 million.
The statement said all of the technical information was based on the extensive reappraisal of seismic data and geological and geophysical studies carried out by Medco on the Madura and Simenggaris Blocks, which led to the identification of the present drilling targets.
The statement said Medco had indicated success rates of 20% and 50% for Sebaya and Karasan respectively and 38% for Pidawan.
Medco, through its joint venture with CityView is the operator of both Blocks and all of the drilling and development work presently being undertaken will be at no cost to CityView.
CityView Corporation is an independent energy company focused on Southeast Asia with prospects in Indonesia and offshore Philippines. The company's largest shareholder is Malaysia Mining Corporation Berhad, a leading global resources company. (alex)