4th Oct 2019 09:35
(Alliance News) - Coro Energy PLC and Empyrean Energy PLC said Friday the Tambak-2 well in the Duyung production sharing contract in the West Natuna basin, offshore Indonesia, has been spud, and drilling has started.
Coro, which is a southeast Asia-focused oil & gas firm, holds a 15% interest in the Duyung, while explorer Empyrean has an 8.5% stake.
The Tambak-2 well is mainly designed as an appraisal of the southern area of the Mako gas field, and will be drilled as a vertical well, with a total depth of 595 metres below sea level.
An independent review by Gaffney Cline & Associates ascribed gross 2C resources of 276 billion cubic feet of recoverable dry gas in the Mako field with gross 3C resources of 392 billion cubic feet, reflecting additional field upside.
Should the Tambak-2 well drilling result in a successful appraisal of the southern area of the Mako field, around 100 billion cubic feet could be added to the 2C category from 3C.
The total time to drill, core, log and test the well is expected to take 33 days, after which the rig will be moved to the Tambak-1 location.
The cost of the two-well programme is expected to be between USD17 million and USD19 million, of which Coro Energy will contribute USD10.5 million. Empyrean will fund 8.5% of the additional campaign costs over and above the Coro funding.
Shares in Coro were up 2.6% at 2.92 pence each, while Empyrean's shares were trading 3.2% higher at 9.70p on Friday in London.
By Dayo Laniyan; [email protected]
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