Lundin spuds Blora exploration well, transfers interest to Kufpec

Swedish independent oil and gas exploration and production company Lundin Petroleum AB said Thursday it had spudded the Padi-1 exploration well in the Blora Block onshore Central Java.

?The drilling operations will be completed in the fourth quarter and the total depth is expected to be 1 235 meters,? Lundin said, adding that the main target of the well is the Oligocene Sandstone formation, a well known and proven reservoir in the area.

Lundin also said it had entered a farm-in agreement with Kuwait Foreign Petroleum Exploration Company (Kufpec) to transfer a 40 percent of working interest in the Block.

?As part of the agreement Kufpec has agreed to fund a percentage of Lundin Petroleum's Padi-1 well costs,? Lundin said.

Following the farm-in and subject to all necessary government and partner approvals, Lundin Petroleum will hold a 43.3 percent working interest and CNOOC will continue to hold 16.7 percent, Lundin added. (Robert)