Medco says Madura Block contains a big potential of gas reserves

Australian oil and gas company CityView Corporation Limited said Friday its joint venture partner in Madura Block, PT Medco Energi International Tbk, had confirmed its technical team's conclusion that the block contains a big potential of gas reserves.

"Medco (the operator of the Block) has conducted an in-house comprehensive evaluation of all the exploration work carried out in the Block," CityView said in its statement to the Australian Stock Exchange.

Madura block is located onshore central Madura Island in East Java's Sampang regency. Earlier, Medco reported that several gas and fluorescent shown at the Telaga-1 prospect. The Telaga-1 was the latest drilling program in the Block. Medco has completed drilling the prospect at total depth of 10,200 feet.

CityView said Medco was in the course of engaging an independent Exploration & Production consultant to do a comprehensive multidiscipline study on the Madura Block, which will become the basis for future work programs and budgets.

"Medco will be requesting the relevant authorities for an extension to the Madura PSC Exploration period (which expires in May 2004) and has expressed confidence that they will be able to secure such extension," CityView added.

State oil and gas firm Pertamina has 35 percent interest in the Madura block, while CityView, Medco and Falcon Oil Pte. Ltd hold 16.25 percent, 24.75 percent and 24 percent, respectively. (robert)