Continental Energy announces Seberaba-1 well spud

Dallas-based firm Continental Energy Corporation announced on Thursday that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. has spudded the first well of its 4-well exploration drilling campaign planned for this year in the Bengara-II Block, onshore East Kalimantan.

Drilling of the 4,000 meters (13,124 feet) deep Seberaba-#1 is expected to take up to 70 days at a cost of over $6,000,000, the company said. The Seberaba-#1 will test a very large faulted structure ideally located to receive a hydrocarbon charge and trap hydrocarbons. It will test the oil production potential of four separate stratigraphic zones at depths between 1,500 to 4,000 meters.

The block?s partnership plans to drill four wells in 2007.

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