Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia announces the following update on its operations in Indonesia.
Citarum PSC (Sound 20%):
Pan Orient Energy, the operator of the Citarum PSC has today provided the following update on operations at the Jatayu-1 exploration well in Java.
“The Jatayu-1 exploration well, located onshore Indonesia will be suspended with the setting of 4.5″ casing down to 6,640 feet measured depth. Upon completion of the casing of the well, the rig will mobilize to the Geulis-1 exploration location with drilling expected to commence on this well in approximately 3 to 4 weeks. During this period, a service rig is planned to be mobilized onto the Jatayu-1 location and to commence drilling the additional approximately 1,300 feet to the Parigi limestone target utilizing slim hole drilling equipment. By placing the unstable, over pressured and gas charged open hole section in Jatayu-1 behind 4.5″ casing, it is believed that drilling fluid losses can be mitigated going forward by allowing, safely, significantly lower mud weights.
With a three week time frame required to mobilize the slim hole drilling equipment to the Jatayu-1 well site, the operation detailed above is expected to result in significant cost savings by not requiring the current drilling rig to go on standby. It is estimated that without significant further drilling problems, the Jatayu-1 will be completed to target depth for approximately $1.5 million USD.”
