Harvest, partner top spud W. Sulawesi well Q2

US firm Harvest Natural Resources, Inc. reported on Tuesday that it and partner would start spudding of the first exploration well in Budong Budong PSC in West Sulawesi in the second quarter of this year, a quarter later than previously planned.

?In 2009, we completed interpretation of 2-D seismic data and began the process of preparing two locations for test wells. After numerous delays, the operator is close to mobilizing the drilling rig and associated equipment to the first location and plans to commence drilling operations in the second quarter of 2010,? the Company said.

Harvest will fund 100 percent of the well expenditures up to a cap US$10.7 million to earn our 47 percent working interest. Costs above that threshold will be shared proportionately with its partner Tately which operates the block.

Harvest said its 2010 budget for the Budong-Budong project is $14.9 million, although that budget could increase to include appraisal drilling, depending on the well results. (alex)