Continental Energy spuds Punga-1 exploration well

Dallas-based oil firm Continental Energy Corporation announced Monday that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. has spudded the Punga-1 exploration well.

The Punga-1 is the fourth well to be drilled as part of the 2007 drilling program for the Bengara-II Block, onshore East Kalimantan.

Drilling of the Punga-1 to a planned total depth of 2,800 meters (9,186 feet) is expected to take up to 60 days at a cost of over US$6,000,000.

The Punga-1 will test a large, seismically mapped structural culmination at a location approximately 16 miles southeast of the Seberaba-1 exploration well location, and approximately 12 miles southeast of the Seberaba-4 appraisal well location.

Meanwhile, drilling continues on the Seberaba-3 and Seberaba-4 appraisal wells and testing continues on the Seberaba-1 wildcat.

Other participants in Bengara-II block are Chinese firm CNPC, which holds 70 percent interest and San Fransisco-based GeoPetro Resources with 12 percent interest. (alex)