Continental Energy says rig has arrived at E. Kalimantan PSC

Dallas-based oil firm Continental Energy Corporation said Friday that the over 8,000 tons drilling rig contracted to drill in its Bengara-II PSC, onshore East Kalimantan has arrived at the staging area.

Indonesian drilling contractor PT Indo Sichuan Petroleum was awarded the contract and will deploy a 1,500 horsepower land drilling rig for the job.

According to the company, earth works at the Seberaba-1 exploration well is nearing completion and construction of a base camp is also nearing completion.

Earlier, San Francisco-based independent oil and gas company GeoPetro Resources Company said that first drilling Seberaba-1 in the PSC is expected to commence in April 2007.

The Seberaba-1 well plans a total depth of 13,780 feet. Drilling and testing of the Seberaba-1 is expected to take approximately three months and is budgeted at $6.2 million. Upon completion of the Seberaba-1 well operations, three additional wells are planned for drilling utilizing the same rig.

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