Cooper Energy to drill 1st well at South Madura PSC

Australian oil and gas firm Cooper Energy Limited said Wednesday it was ready to drill first exploration well in the South Madura prospect early next year following a good results on the 2D seismic reinterpretation. The company said it had secured a drilling rig for the purpose.

Cooper Energy said the preliminary geological evaluations of the 2D seismic had attributed P50 undiscovered reserves of 199 million barrels of oil at Kujung level and 256 billion standard cubic feet of gas at the shallower Ngrayong level.

Cooper Energy acquired a 45 percent interest in the South Madura PSC earlier this year after acquiring 50 percent shares of South Madura Exploration Company Pte Ltd that holds 90 percent interest in the block.

The onshore block ? which is surrounded by several major oil and gas fields in the East Java Basin, lying immediately north of the Santos-operated Jeruk and Oyong oil and gas discoveries ? represents Cooper?s most significant overseas acquisition to date.

Cooper Energy paid US$1.5 million under the farm-in arrangement and, moving forward, will pay 50 percent of the cost of a US$8.9 million work program comprising both seismic and wells.

The PSC was awarded by the government in August 2003. (Robert)