Pan Orient updates Indonesia operations
Thursday, August 23 2012 - 02:38 PM WIB
Citarum PSC (Pan Orient Operator and 77% Working Interest)
Jatayu-1 Exploration Well
Since the operations update of July 25th, the well was drilled through the first loss zone at 6,173 feet to a depth of 6,330 feet where total drilling fluid losses were once again encountered resulting in heavily gasified mud resulting in a four meter gas flare when the mud was run through a separator at surface. A cement plug was run to cure the losses and was drilled out to 6,329 feet where losses were once again encountered and the decision was made to run wireline logs and pressure points, which were run successfully. A preliminary interpretation of the wireline logs and pressure data collected over the interval of interest was unable to confirm the presence of gas pay.
Two further attempts were made to drill through the loss zone at 6,330 feet with a maximum depth of 6,346 feet achieved before once again having to set a cement plug in an attempt to deal with the drilling fluid losses. Presently, one last cement plug has been set and the well is currently drilling cement just above the loss zone. In the event that the drilling fluid losses that are unable to be controlled are experience in this latest attempt, the well will be suspended and the rig will mobilize to the Geulis-1 location with that well anticipated to spud in the next three to four weeks.
Batu Gajah PSC (Pan Orient Operator and 97% Working Interest)
Negotiations are currently focused on the final draft access agreements. It is expected that these agreements will be finalized within the next two weeks, allowing for the drilling of two wells and the acquisition of 3D seismic to commence prior to year-end 2012. In the event that final agreements are unable to be agreed between Pan Orient and the Indonesian forestry company within two weeks, the start of operations will be delayed to the end of the first quarter of 2013 due to the rainy season.
East Jabung PSC (Pan Orient Operator and 97% Working Interest)
A 2D seismic acquisition program is anticipated to commence in mid-March 2013 as the permitting for the program will not be completed until December 2012 and the end of the rainy season is typically in early March.
South CPP PSC (Pan Orient Operator and 100% Working Interest)
A 2D seismic acquisition program at the South CPP PSC is expected to commence in October 2012 with the drilling of one exploration well planned for the first half of 2013.
Capital expenditures
Capital expenditures in Indonesia during the first half of 2012 have been $18.5 million, with of $17.4 million at the Citarum PSC (Pan Orient operator and 77% ownership), $0.4 million at the Batu Gajah PSC (Pan Orient operator and 97% ownership), $0.1 million at the South CPP PSC (Pan Orient operator and 97% ownership) and $0.6 million at the East Jabung PSC (Pan Orient operator and 100% ownership). (end of excerpt)