Medco Energi kicks off drilling on Lagan Deep-1 exploration well

PT Medco Energi internasional Tbk said that it has spudded the Lagan Deep-1 exploration well located in the South & Central Sumatra PSC, on 7 September 2011.

Medco Energi has a 100 percent percent interest in the South & Central Sumatra PSC.

The Lagan Deep-1 exploration well is located 13 kilometers south of Rambutan Deep-1 exploration well. Lagan Deep-1 will target gas-bearing sandstones in the Talangakar Formations (Oligocene in age) with 11,500 feet total vertical depth using the Antareja 8 rig.

The drilling is expected to take 75 days to complete. The economics of Lagan Deep development assume that the gas will be gathered and processed in Lagan Area by utilizing production facilities, in the vicinity.

?In the event that the exploration is a success, Medco Energi will deliver the gas to the near-by Rambutan Station which is also located within the South & Central Sumatra PSC through gas pipelines to off-takers/buyers,? said Frila B. Yaman, Medco Energi Director of Operations.?

?Medco Energi is pleased to conduct another exploration program in South & Central Sumatra PSC Block,? said Lukman Mahfoedz President Director of Medco Energi. ?We?re looking forward to continue our partnership with our key stakeholders and to help develop Indonesia?s gas resources.? (romel/godang)