Medco to re-enter Sebaya-1 in East Java next year

Australian listed oil explorer CityView Corporation Limited reported on Friday that its 75 percent joint venture partner in Madura exploration block, East Java, PT Medco Energi Internasional Tbk had planned to re-enter the Sebaya-1 well in 2002 using rig equipment that can withstand the high formation pressures.

According to CityView, Medco?s original objective for Sebaya-1 was to drill to a depth of 1230 meters (4035 feet). During the course of the drilling three zones of oil and gas shows were encountered between 2250-3100 feet. Medco plans to conduct tests in this interval in 2002.

Medco was encouraged by the drilling results to decide to deepen the well to 6400 feet to explore the deeper zones. During the deepening of the well they encountered high formation pressures, which the rig could not withstand.

Oil and gas shows were encountered at 4527 feet and 5793 feet. Due to lost circulation problems at 4531 feet and high formation pressures encountered below this depth, deeper drilling was suspended at 5954 feet. The well was plugged back with cement to 5498 feet and 7-inch liner was run and cemented with the bottom of the liner at 5310 feet.

A zone that had encountered oil and gas shows from 4527-4570 feet was production tested to determine the pressure, fluid content and potential production rates of the formation. The 7-inch liner was perforated with four perforations per foot from 4528-4540 feet. Small amounts of salt water were recovered. An attempt to inject salt water into the perforations with 1100 psi at the surface was negative.

Based on the test results, Medco is of the opinion that the perforation failed to make holes through the liner and cement into the formation. Medco plans to re-enter the well in 2002 using a rig equipped with a BOP that can withstand the higher.

CityView has a 25 percent interest in Madura and is free carried by Medco throughout this extensive work program.(alex)