Drilling of Kerendan wells progressing well

By Demas Simbolon

UK-based oil and gas firm Sound Oil reported on Friday that drillings of development wells in Citarum Block and Bangkanai Block have been progressing well after a lapse of several years.

The company said in press statement on Friday that at the Citarum production sharing contract (PSC), where it has a 20 percent interest, the operator, Pan Orient, moved the rig to the Jatayu wellsite in March after abandoning the earlier Cataka-1 well above the reservoir target due to continuous drilling problems.

The Jatayu-1 well encountered gas bearing and overpressured sandstones below 5,700 feet which ultimately required using a high density mud weight for safe drilling. When the well was deepened to below 6,000 feet, mud was lost into the formation.

This indicates either that naturally occurring porous rocks had then been encountered, or that mechanical fracturing of the formation had occurred as a result of previous exposure to high-density drilling mud.

These conditions caused drilling problems resulting in three sidetracks. Finally the Operator ran a 4 1/2" liner to 6,636 feet and the well was suspended in September pending the arrival of a slim-hole drilling rig on site.

Pan Orient intends to use this rig to drill to the target horizon at approximately 7,500 feet. Meanwhile Pan Orient will move the conventional rig to the Geulis wellsite.

At the Bangkanai PSC, the Kerendan Gas Field development drilling campaign commenced in August with the first of four deviated production wells which Salamander, the Operator, intends to drill from a common wellsite.

Under the terms of the ratified Gas Sales and Supply Agreement, the Indonesian electricity utility PLN is required to purchase the supply of Kerendan gas starting in the second half of 2013.

Following the Kerendan drilling, the Operator will move the rig to drill the deep West Kerendan-1 well. This will be the first of two high impact exploratory wells at the PSC.

Sound Oil has a 5 percent carried interest in this permit whereby Salamander bears all the Company's share of the cost of drilling the Kerendan production wells, the cost of all development and production facilities and the cost of two exploratory wells, up to the point when gas is first produced.

Editing by Benget Besalicto Tnb.