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    Indonesia's Conrad Hires Rig For Well Work

Summary

The company and its partners are targeting prospects at the Duyung PSC off Indonesia's Riau Islands.

by: Joseph Murphy

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Natural Gas & LNG News, Asia/Oceania, Premium, Corporate, Exploration & Production, Contracts and tenders, News By Country, Indonesia

Indonesia's Conrad Hires Rig For Well Work

Jakarta-based Conrad Petroleum has obtained a drilling rig for exploration work at the Duyung production-sharing contract (PSC) area off the shore of Indonesia’s Riau Islands.

The Asian Endeavour-1 jack-up has been leased from China Oilfield Services (Cosl) for a two-well campaign, London-listed project partner Coro Energy said in a stock filing on August 19. The unit is expected to move from Singapore in late September.

Conrad operates the Duyung PSC with a 76.5% interest, while Coro has 15% and another London-traded company called Empyrean Energy has 8.5%.

The first of their planned wells, Tambak-1, will test the Tambak prospect, a three-way dip closed inverted anticlinal structure located below the centre of the Mako gas field. The reservoir is understood to be early Oligocene-age fluvial and lacustrine sandstone of the Lower Gabus formation and charged by the underlying syn-rift lacustrine source rocks of the Benua shale.

Coro believes there is a 45% chance at success at Tambak, which it estimates to contain 250bn ft3 prospective resources.

The second well, Tambak-2, will appraisal the intra-Muda sandstone reservoirs in the southern section of Mako, while also gathering stratigraphic information from Lower Gabus interval.

The drilling campaign is slated to cost $15.5mn on a dry-hole basis and up to around $19mn on a fully-tested basis, including rig mobilisation and de-mobilisation. It has been approved by Indonesian authorities, Coro said.