Lundin Petroleum spuds Banyumas? Jati-1 exploration well

Swedish independent oil and gas company Lundin Petroleum AB reported on Friday that it had spudded the Jati-1 exploration well in order to test the Cipari prospect of the Banyumas Block onshore Central Java.

?The target depth for the well is 3,000 meters and drilling is scheduled to take approximately 50 days,? Lundin said in a statement.

Lundin Petroleum is the operator of the well but the firm will sell some of its stake in the block to Star Energy if oil is found in the block. The exploration costs of the well are funded by Star Energy under the farm-out agreement concluded last year.

Under the farm-out agreement, Lundin and ConocoPhillips, another participant in the block, have agreed to farm out a 25 percent working interest each in the block to Star Energy. Before the deal, Lundin and ConocoPhilips equally owned the block.

Star Energy will take over the operatorship if Lundin and ConocoPhilips make a commercial discovery in the block and the government approve the development of the block. (Robert)