Oil and gas company Conrad Petroleum has received approval for its Duyung license drilling plans in Indonesia and has hired a drilling rig for the project.
Conrad’s partners in the project Empyrean Energy and Coro Energy said Monday that the Indonesian authorities had approved the two well program aimed at Mako gas field appraisal.
The first well is slated for October 2019, with drilling and testing program expected to last through to December 2019.
The campaign will comprise of two wells, an exploration well designed to test the Tambak prospect beneath the central area of the Mako gas field, and an appraisal well designed to primarily appraise the intra-Muda sandstone reservoir in the southern area of the Mako field, as well as gather stratigraphic information from the Lower Gabus interval. The Indonesian authorities have requested the naming convention Tambak-1 for the exploration & appraisal well and Tambak-2 for the appraisal well.
The Asian Endeavour-1 jack-up rig, owned by China Oilfield Services Limited (“COSL”), has been contracted for the drilling campaign.
The gross cost of the program is expected to be approximately $17 million – 19 million to the PSC partners on a fully tested basis, including rig mobilization and demobilization. Coro Energy Plc will provide$10.5MM. Empyrean will fund 8.5% of the drilling campaign costs over and above the Coro funding. The upside range of costs reflects the additional costs involved in testing the Tambak prospect should logging provide encouragement for testing, Empyrean said.
Rig to move from China soon
According to Empyrean, the Asian Endeavour-1 jack-up rig will shortly mobilize for Singapore from the COSL yard in Shanghai. On the current schedule, the rig is expected to mobilize from Singapore to the first location in late September 2019.
Empyrean CEO Tom Kelly commented, “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.”
To remind, the Ministry of Energy and Mineral Resources (MEMR) in Indonesia in March approved the Plan of Development (POD) for the Mako gas field. The plan for the development of the Mako gas field had been submitted in August 2018 and re-submitted under the gross split regime in January 2019.
As shared in March, the operator’s field development plan envisages an initial four-well development scheme, a small platform with compression facilities and an additional four wells as a second phase to be drilled later in the field’s life. The plateau production rate is envisaged to be up to 90 MMscf/d.
Offshore Energy Today Staff
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