Continental Energy gets drilling site permits from local administration

Dallas-based junior oil exploration firm Continental Energy Corporation announced Tuesday that it had received site permits from local village and Bulungan Regency administration for its exploration drilling program in Bengara-II block in East Kalimantan.

?The site licenses cover five proposed exploratory drill sites within Continental's Bengara-II block production sharing contract area in East Kalimantan, including the three exploration well sites planned for 2004-2005,? Continental said in a statement.

Continental also said surface damage compensation for current and future agricultural crop losses was paid to local inhabitants.

Continental, however, did not say when it would commence the drilling campaign.

The company said earlier this month that it had received approval from upstream oil and gas authority BPMIGAS to drill three exploration wells, namely Pungit-#1, Seberaba-#1, and Apung-#1.

The Bengara-II block is located mostly onshore but partially offshore astride the Bulungan River Delta in East Kalimantan on the northeast coast of the island of Borneo.

Continental operates the block through its 60 percent-owned subsidiary Continental-GeoPetro (Bengara-II) Ltd. (robert)