19th Aug 2019 11:22
(Alliance News) - The partners at Indonesia's Duyung production sharing contract in Indonesia have completed the planning for a drill programme, with initial well spud planned for October, the two London-listed partners said Monday.
Coro Energy PLC and Empyrean Energy PLC are working on Duyung alongside Conrad Petroleum. Duyung is offshore Indonesia in the West Natuna basin and includes the Mako gas field.
Coro holds a 15% non-operated interest in the project while Empyrean holds an 8.5% interest. Coro is funding the first USD10.5 million drilling campaign costs. The campaign is expected to cost between USD17 million and USD19 million.
They will drill an exploration well on the Tambak prospect under the centre of the Mako field - Tambak 1 - then perform a large step out on the intra-Muda sandstone reservoir to the south of Mako - Tambak 2.
The Tambak 1 well is expected to be drilled to a total depth of 1,370 metres, which should tale 33 days. The partners believe they have a 45% chance of technical success.
Tambak 2 will be drilled to a total depth of 595 metres, which should also take 33 days.
Continuous drilling and testing is planned to last through December. Independent work found the Mako field has gross recoverable dry gas of 276 billion cubic feet.
The partners have contracted the Asian Endeavour-1 jack up rig, owned by China Oilfield Services Ltd.
Empyrean Chief Executive Tom Kelly said: "The upcoming drilling campaign at the Duyung PSC in Indonesia promises to be very exciting and somewhat unique in that we are combining a lower risk appraisal component with a high impact exploration prospect.
"In our view, the main aim of the drilling is to appraise the Mako gas discovery and convert the current 3C resources into 2C resources. This alone would increase the value significantly at Mako. Any new discovery at Tambak would be an absolute bonus. We look forward to providing updates as this exciting drilling campaign swings into action shortly."
Shares in Empyrean Energy were 5.9% higher in London on Monday at 8.47 pence each. Coro Energy was 1.1% lower at 2.20p.
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