Medco plans to drill three wells in Madura, Simenggaris blocks

Australian firm CityView Corporation said Friday that PT Medco Energi Internasional, the operator of Madura block in East Java, had requested the authorities for an extension of the exploration license to enable the operator to drill another well at Sebaya #3 as a delineation well in relation to Sebaya #1.

In its quarterly report CityView said the operator had advised that two Drill Stem Tests (DST) had been carried out on Sebaya #2. Both DSTs were unsuccessful despite extensive fracturing being carried out for DST 2.

?Medco Energi has recommended that the well be suspended pending a full technical evaluation of the well,? CityView said.

CityView also said a petroleum system study was commissioned and carried out at MedcoEnergi operated Simenggaris block in East Kalimantan by the Bandung Institute of Technology with support from the Indonesian Petroleum Geosciences Study Centre.

Based on the said study, the operator proposed to drill two wells, namely Sesayap B and South Sembakung #2 in 2005, CityView added.

CityView has a 20 percent gross interest in the Madura and a 25 percent gross interest in the Simenggaris blocks. (Robert)