First drilling at Selong-1 well to commence

By Peni Pedriawan

Indonesia-listed PT Sugih Energy, a partner of operator PT Hexindo Gemilang Jaya for the Lemang PSC block, announces that exploration drilling at the block will commence later in October 2012.

The first exploration well is the Selong-1 well, located at the block?s Akatara prospect, with a spud in date scheduled for October 29, 2012, the company said in a statement.

Sugih holds a 49 percent participating interest in the block, with Hexindo, a subsidiary of Singapore-listed Ramba Energy Limited, controlling the balance. The block is located in Jambi Sumatra and adjacent to the Jabung block, operated by PetroChina, an already-producing block.

Based on volumetric studies from international petroleum consultancy DeGolyer & MacNaughton (D&M), the Lemang block holds an estimated 511 million barrels of oil and 467 billion cubic feet of gas (gross recoverable prospective resources).

The PSC for the Lemang block was awarded in 2007 and will remain valid until 2037.

Editing by Dadan Wijaksana