Sonoro plans to drill appraisal wells in Budong Budong PSC this year
Friday, August 12 2016 - 02:34 AM WIB
TSX-listed Sonoro Energy Ltd. said it plans to drill one to two appraisal wells in the Budong Budong PSC, in West Sulawesi, in the fourth quarter of this year.
The company, which through June and July has been re-organizing itself to focus on Indonesia and South East Asia following the acquisition earlier in June of Stockbridge Oil and Gas Ltd, which holds controlling shares in the operator of the Budong Budong PSC, said in a statement obtained Friday that it has put in place plans to drill one to two appraisal wells in the Budong Budong PSC for a shallow (500m), well defined Pliocene structure, which through the previously drilled and abandoned LG-1, had oil and gas shows.
In July 2016, the company hired an Integrated Project Management (IPM) team to begin with planning, engineering and permitting for the appraisal wells which are up-dip on the structural crest from the LG-1 well. The IPM team work is expected to be concluded by the end of August or early September 2016. With this initial work completed the company expects to have a finalized drilling program, identified potential drilling rig contractors, other drilling services and submitted drilling and land permitting applications to the Indonesian federal and local governments. An environmental assessment and report is also expected to be commissioned by the company along with a corporate social responsibility plan for the project.
?While the company hopes to drill these appraisal wells in the fourth quarter of 2016, this is dependent on a number of factors including further approval from the Indonesian governments to permit an extension of the January 15, 2017 license expiry term associated with the Budong Budong PSC and the company securing the necessary funding to drill these appraisal wells,? Sonoro said in the statement.
The company said it expects an independent resource evaluation for the Budong Budong PSC to commence shortly with an expected completion date in September of 2016. This independent resource evaluation should provide further independent verification of project risk, resources, and values.
The company is focused on the Budong Budong PSC project and re-visiting the early success of others that had previously produced wells in this area from similar shallow oil and gas zones. Should the appraisal wells be successful the company said it would look to then move to a fast track plan of development and early production.
Sonoro said it is also investigating additional low risk, onshore exploration projects in SE Asia with the regions high demand for energy, stability, well developed oil and gas basins and our team?s track record and success in this region.
Sonoro acquired Stockbridge, which in May acquire the shares in Harvest Budong-Budong BV, which holds a 71.5 percent interest in the Budong-Budong PSC, with the remainder held by Tately Budong-Budong BV.
Editing by Reiner Simanjuntak