Medco to drill appraisal well in Madura block in Q4

Australian publicly listed oil company CityView Corporation Limited said Thursday its joint venture partner and the operator of Madura block onshore East Java, PT Medco Energi International, planned to drill an appraisal well, the Sebaya-2, in the fourth quarter of 2004.

CityView said Medco had submitted the work program and budget for that drilling program. ?The Operating Shareholder (Medco) is certain that the extension will be granted in due course,? CityView said.

The exploration license of the Madura block will be expired on May 15, 2004. Consultancy firm Gaffney, Cline & Associates (Consultants) Pte (GCA) has advised the joint venture to extend exploration activities on the block.

GCA also advised that Medco should drill two appraisal wells (1 firm and 1 contingent on the firm well) on Sebaya prospect.

According to GCA's report, the central fault block of the Sebaya prospect is estimated to contain about 155 billion cubic feet (BCF) of recoverable gas, more than enough for the power market in Madura.

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)