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Tambak 2 Well spudded

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Oilfield Technology,

Empyrean Energy Plc has provided an operational update in relation to the upcoming drilling campaign in the Duyung PSC in the West Natuna Basin, offshore Indonesia, in which Empyrean holds an 8.5% interest.

As previously advised, the drilling rig Asian Endeavour-1 jack up rig was mobilised from Singapore on 24 September and has been on location since 30 September. Empyrean has been advised that pre-loading of equipment and supplies for the two well programme has now completed and drilling of the Tambak-2 well has commenced.

The Tambak-2 well is primarily designed as an appraisal of the southern area of the Mako gas field. The well, which is a very large step out (over 13 km) south of the Mako South-1 location, will be drilled as a vertical well and is prognosed to intersect the intra-Muda reservoir up dip from the Mako South-1 well, at a depth of approximately 380 m below sea level. The well is planned to total depth at approximately 595 m below sea level. A full reservoir evaluation programme is planned, including an extensive suite of logs, coring and open hole testing, in order to derive as much information as possible about the Mako gas field reservoir.

An independent review by Gaffney Cline & Associates ascribed gross 2C resources of 276 billion ft3 (48.78 million boe) of recoverable dry gas in the Mako field with gross 3C resources of 392 billion ft3 (69.3 million boe) representing additional field upside. These resource estimates will be updated post completion of the drilling programme.

Total time to drill, core, log and test is estimated to be approximately 33 days, after which the rig is then planned to move to the Tambak-1 location. The gross cost of the two well programme is expected to be approximately US$17 million – US$19 million to the PSC partners on a fully tested basis, including rig mobilisation and de-mobilisation, for which Coro Energy Plc (Coro) is funding US$10.5 million. Empyrean will fund 8.5% of the additional drilling campaign costs over and above the Coro funding.

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