Sound Oil discloses problems at Jatayu-1 well drill

By Peni Pedriawan

Sound Oil, which holds non-operating interest in Citarum production sharing contract (PSC), said that the operator of the block has encountered problems during well drilling, prompting the operator to stop the drilling.

A decision to stop drilling and log the well was taken at 6,173 feet, the company said.

It said the operator of the block, Pan Orient Energy, is currently running a cement plug at the bottom of the well where mud losses were observed and will then drill ahead to a suitable point to decide whether a more permeable reservoir is present and then log the well.

"In the event that it is not possible to cure the drilling fluid losses, a revised forward program for the well will be issued by the operator," said Sound.

"Jatayu is proving a very problematic well with gas shows over a 600 feet interval and with zones of different pressures,? the firm's Chairman and Chief Executive Gerry Orbell said.

"The hole condition makes wireline logs difficult to interpret although we are encouraged by our own analysis that indicates several units with reservoir potential," he noted.

Sound has a 20 percent stake in the Jatayu-1 project, in the Citarum PSC.

Editing by Roffie Kurniawan