Interra starts drilling at Linda Sele field

By Demas Simbolon

SGX-listed Interra Resources Limited said that its wholly owned subsidiary, Goldwater LS Pte. Ltd. (GLS), has commenced drilling of development well LDA G-5XTW at the Linda Sele (LS) fields onshore West Papua, Indonesia.

GLS has 100% participating interest in the LS Technical Assistance Contract and is the operator of the LS fields.

The company said in a press statement on Friday that since the completion of the acquisition of LS in January 2011, new drilling was temporarily suspended pending the results of 3D seismic data acquisition and interpretation over the blocks.

Detailed interpretation of the data is ongoing and several quality locations have already been delineated based on the 3D seismic results over LS.

The 3D interpretation has allowed a much better understanding concerning the very complex structural and stratigraphy nature of the carbonate reef formations which may greatly enhance selecting optimal locations.

LDA G-5XTW is drilled as a twin replacement well for LDA-G5 which was completed in January 2005 after having oil to surface, but was plugged due to well control problems. It will be drilled using an externally contracted rig and is proposed to be drilled to a total depth of 900 metres with the primary objective being the reservoirs of the Kais formation and with secondary objectives being variable shallower reservoirs.

Interra estimates that the results of the drilling should be available in approximately eight weeks. The company will announce the results as soon as they may be ascertained as well as updates reflecting critical or unexpected events during drilling.

The Company wishes to advise that investors should exercise due care and caution when trading Interra?s shares. It is not certain that the development drilling mentioned above will ultimately yield commercially recoverable hydrocarbons or profitable production.

Editing by Benget Besalicto Tnb