Star Energy to spend $26 million for E. Kalimantan exploration block

Oil and gas company Star Energy plans to spend up to US$26 million to finance exploration activities at the company's Sebatik block in East Kalimantan .

 

Sanusi Satar, the company's deputy director for external relations, said in Jakarta Tuesday that drilling activities at the Sebatik block would be carried out in the middle of next year.

 

"For the initial step, we will drill two onshore wild cats to find the actual reserve at the Sebatik block," he said.

 

Star has 100 percent working interest in Sebatik block. The company has carried out 550-km 2D seismic survey on the block. The company acquires the block in August 2005 through direct offer mechanism.

 

According to Sanusi, the company would also begin a seismic survey at the company's Sekayu block in South Sumatra early next year.

 

Meanwhile, the company's Kakap block currently produce oil with an initial capacity of about 7,500 barrels per day and gas of between 58 and 60 million standard cubic feet per day. Total production is about 15,000 barrels of oil equivalent per day. (godang)