Release: Ranhilll Bhd: Pasundan-1 exploration well update

(22 August 2007)--We wish to update on Pasundan - 1 exploration well in West Java , whereby drilling has progressed to 8,620 ft.

 

Several indications of existing hydrocarbon shows have been encountered in the Baturaja limestone formation from the side-wall cores at depths 7,112 ft to 7,124 ft and typically lower formation pressure gradients at depth 7,870 ft to 8,143 ft.

 

The average formation pressure gradient is 0.39 lb/ft however a better pressure gradient was found at depth 8,138 ft to 8,141 ft of value 0.316 lb/ft. The existence of hydrocarbon shows are also found from the drilling cuttings at depth 8,510 ft to 8,520 ft.

 

Baturaja formation is quite thick, in excess of 2,500 ft in this well and the formation is a good reservoir based on the data from the surrounding oil fields.

 

Currently, no estimate on the volume and the quality of Oil in Place in the Baturaja limestone formation is available as the production test will be performed once the well is completed. We shall continue drilling ahead into sandstone and shale at the Talang Akar formation for a thickness of about 2,000 ft.

 

The Talang Akar formation is known as a good productive reservoir based on the wells drilled in the surrounding areas. The Target Total Depth is the basement rock which is estimated at 10,500 ft. (end of release)