Medco drills South Sebuku-2 well in Bengara I PSC

Friday, June 17 2011 - 02:45 AM WIB

After successfully discovering gas from the South Sebuku 1 (SS-1)'s exploration well, located in Block Bengara I PSC, East Kalimantan, PT Medco Energi Internasional Tbk, through wholly owned subsidiary PT Medco E&P Bengara and partner Salamander Energy (Bengara) Ltd, announced that it had started the well drilling activities in South Sebuku-2 (SS-2) on June 17, 2011.

The SS-2 appraisal well, which is located 2.8 kilometer northwest of the SS-1's well, will target standstones with gas content under the Tabul, Meliat and Naintupo formation and will be drilled with a total vertical depth of 1,370 meter from the sea surface using land bridge HPS-1 in a process estimated to be completed within 30 days, the company said in a press release.

Previously, it was announced on August 13, 2009 that SS-1's well has been drilled by as deep as 1,533 meter from the sea surface where several sandstone with gas substance were discovered under the formation of Tabul and Meliat. The Drill Stem Test (DST) has been carried out in two gas zones, flowing gas at aggregate level of 12.6 MMSCFD. A Modular Dynamic Tester (MDT) formation survey identified three gas zones within the Tabul formation, and an DST in one of the zones at 575 meter depth flowed 8.7 MMSCFD. In a deeper Meliat formation, testing has also been conducted at 1,250 meter depth from the sea surface which flowed 3.9 MMSCFD.

If the results are positive, Medco with partner Salamander will carry out further study to combine the successful finding in South Sebuku well with the South Sembakung gas well (Block Simenggaris PSC), both are operated by Medco, to meet local mining energy and industry needs. Medco has a 58.33% participating interest in Block Bengara 1 PSC, with Salamander holding the remaining 41.67%.

Lukman Mahfoeds, Medco's President Director, said: "I am very optimistic that SS-2 will follow the exploration success of SS-1 in 2009. Our exploration team has worked extensively to provide added values to domestic exploration program in an effort to support national policy in gas monetization." (godang)

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