Medco, partners to drill 28 exploration wells 2013-14

IDX-listed energy firm PT Medco Energi Internasional Tbk announced on Wednesday it will drill 28 exploration wells in its blocks in 2013-14, in line with the company?s business strategy to focus on E&P business by means of increasing total reserves through exploration activities.

The company and its partners have allocated 2013 exploration budget for a total of around US$ 120 million and up to July 2013 the realization has reached in the range of $ 50 million. The company is targeting to gain additional resources approximately at 130 million.

According to Medco, the program consists of 11 wells in Indonesia and 17 wells in international operations, namely Area 47 in Libya, Block 82, 83 and Block 9 Malik in Yemen.

Up to September 2013, Medco has completed five wells, two of which are in Indonesia (Matang-1 at Block A, Aceh and Bajul Besar-1 at Simenggaris Block, East Kalimantan) and three wells in overseas (Ras Nowmah South-1, Ras Nowmah North-1 and Sueda-1, all are in Block 9 Malik).

Currently, one exploration wells is being drilled in Indonesia, i.e. Lagan Deep-1A in South Central Sumatra (SCS) Block, South Sumatra, the company said. Lagan Deep-1A well will try to prove extensive gas accumulation in Talang Akar formation.

According to Medco the discovery will provide additional gas reserves to supply the industry in South Sumatra area as it currently supplies around 120 MMSCFD to South Sumatra gas market.

Aside from Lagan Deep-1A, six wells are currently on the queue for rig spud-in by the remaining of this year, starting with: Salina-1 (Rimau Block), Arung-1 (SCS Block), Pastel (Tarakan Block), all are in Indonesia; and O2 Area 47 (Libya), Al Shamliah and Al Hedba Plateau-1 (both in Yemen), the company said

Editing by Alexander Ginting