Ephindo to start Sumatra, Kalimantan CBM drilling campaign year-end

CBM exploration firm Energi Pasir Hitam Indonesia (Ephindo) said it will start core-drilling campaign at its South Sumatra and Kalimantan blocks by year-end.

Chairman W. Yudiana Ardiwinata told reporters that the company will start with drilling two wells in South Sumatra, followed by three wells in East Kalimantan.

?We are currently reviewing whether we?ll employ special CBM rig or regular rig used in onshore oil, gas drilling,? he said.

Upon completion of the core-drilling, the company will analyze data and submit plan of development, he said, adding that one core-drilling normally costs US$500,000.

He hoped Ephindo would be able to start CBM production from South Sumaytra concession in 2011-12.

PT Ephindo operates Sekayu CBM block in Musi Banyuasin, South Sumatera and Sangatta I block in East Kalimantan. (bernard)