4th Nov 2019 12:31
(Alliance News) - Coro Energy PLC and Empyrean Energy PLC on Monday reported the estimated costs and duration of the upcoming drilling campaign on the Duyung production sharing contract, located offshore Indonesia.
Coro holds a 15% stake in Duyung, while Empyrean has an 8.5% interest.
Both companies said the Asian Endeavour-1 jack-up rig has been on location since November 1 and drilling of the Tambak-1 well has commenced, following the successful appraisal at Tambak-2.
The well will be drilled as a vertical well and is expected to intersect the top of the intra-Muda reservoir at a depth of 1,276 feet below sea level. The well will be then deepened below the base Muda unconformity to test the underlying Lower Gabus section.
The well is planned to total depth at 1,370 metres below sea level, Coro and Empyrean said.
Total time to drill, log and test in the event of success is estimated to be 33 days, after which the well will be plugged and abandoned and the rig de-mobilised.
Empyrean said the gross cost of the two well programme is expected to be between USD17 million and USD19 million to the production sharing contract partners on a fully tested basis, including rig mobilisation and de-mobilisation, for which Coro Energy is funding USD10.5 million. Empyrean will fund 8.5% of the additional drilling campaign costs over and above the Coro funding.
Coro said it remains fully funded for its share of costs associated with the current drilling campaign.
Empyrean shares were trading 3.5% lower in London on Monday at 8.25 pence each, while Coro shares were down 2.0% at 2.40p each.
By Evelina Grecenko; [email protected]
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