Coro Energy upbeat as drilling begins at Duyung

South east Asia-focussed upstream oil and gas company Coro Energy updated the market on the drilling campaign in the Duyung production sharing contract in the West Natuna basin, offshore Indonesia on Friday, in which it held a 15% interest.

The AIM-traded firm had previously reported that the drilling rig Asian Endeavour 1 was mobilised from Singapore on 24 September, reporting on Friday that it had been on location since 30 September.

It said the pre-loading of equipment and supplies for the two well programme had now completed, and drilling of the Tambak-2 well had started.

“The Tambak-2 well is primarily designed as an appraisal of the southern area of the Mako gas field,” the Coro Energy board said in its statement.

“The well is a very large step out - over 13 kilometres - south 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 metres below sea level.

“The well is planned to total depth at approximately 595 metres below sea level.”

A full reservoir evaluation programme was planned, Coro said, 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 cubic feet, or 48.78 million barrels of oil equivalent, of recoverable dry gas in the Mako field, with gross 3C resources of 392 billion cubic feet, or 69.3 million barrels of oil equivalent, representing additional field upside.

It estimated that, in the event of the Tambak-2 well resulting in a successful appraisal of the southern area of the Mako gas field, approximately 100 billion cubic feet of gross contingent resources would be added to the 2C category from the 3C category.

That would represent “very significant” low risk value addition to what the board said it considered an already-attractive commercial development opportunity, and would further enhance the appeal of the field as a source of gas for the Singaporean market.

“Total time to drill, core, log and test is estimated to be approximately 33 days, after which the rig is then planned to immediately move to the Tambak-1 location,” Coro Energy added.

“Coro is fully funded for its share of costs associated with the drilling campaign.”