Pan Orient abandons Cataka-1A well

By Ruli Setiawan

Canadian oil and gas firm Pan Orient Energy Corp has decided to abandon the Cataka-1A exploration well in Citarum PSC before reaching its primary objective of Paragi Limestone due to an unexpected encounter.

The company said in a press statement on Tuesday that the well encountered numerous intervals of severely tectonically fractured shale that were highly unstable, particularly in this directionally drilled deviated well bore.

The company believes that to continue drilling would not be prudent given the difficulties encountered to date and the low probability of reaching the final objective.

The data gathered from the Cataka-1A well will be analysed over the coming weeks and the company will initiate farm-out process seeking a partner for the Citarum Production Sharing Contract which possesses an attractive large cost recovery pool, good fiscal terms for natural gas and highly prospective within a region of existing infrastructure and a large deficit of natural gas supply relative to demand.

As an operator, Pan Orient currently has a working interest of 97 percent in the Citarum PSC.

Editing by Benget Besalicto ST