Medco, Cityview to start E. Java drilling August

Australian listed oil and gas company CityView Corporation Limited said Wednesday that its Joint Venture partner PT Medco Energy Corporation Tbk. has advised that a rig will be deployed mid August from its present Sumatran work location to Madura for the drilling of Sebaya in East Java in which CityView holds a 25 percent interest.

Cityview said the first well to be drilled at Sebaya would be to the relatively shallow depth of 1,230 meters, which Medco estimates should contain approximately fifty million barrels of recoverable oil from two separate formations

Madura Island is near the large industrial city of Surabaya. The Madura Block covers 674,100 acres and lies in proximity to large fields along the Javanese coastline. There is extensive oil and gas activity in the Madura Straits where Santos Limited/Cue Energy Resources are currently drilling their Oyong-2 well: they have reported that wire line logs have been run and have confirmed a gas column of 110 meters and a gross oil column of up to a possible 40 meters.

Medco through its Joint Venture with CityView is the operator of both the Madura and Simenggaris Blocks and all current drilling and development work is at no cost to CityView.

CityView Corporation is an independent energy company. The Company's largest shareholder is Malaysia Mining Corporation Berhad, a leading global resources company. (alex)