Coro, Partners Agree on Indonesia Drilling Plan
The Duyung partners have agreed their upcoming drilling programme in the West Natuna basin, offshore Indonesia which contains the Mako gas field, London-listed Coro Energy said April 29.
The Duyung production-sharing contract (PSC) is wholly owned by West Natuna Exploration (WNEL) owned by Singaporean Conrad (90%), and by AIM-listed but Western Australia-based Empyrean Energy (10%). As part of the deal to acquire its 15% interest in the PSC, Coro will be contributing $10.5mn to the total cost of the drilling campaign. Its 15% will come pro rata from the two shareholders, leaving Conrad with 76.5% and Empyrea with 8.5%.
The campaign will comprise two wells, one exploration well designed to test the Tambak prospect beneath the central area of the Mako gas field, and one well designed to appraise the intra-Muda sandstone reservoir in the southern area of the Mako field.
The drilling campaign is anticipated to start in September 2019, with each well taking about 33 days to drill and test. The gross cost of the programme is expected to be about $17mn on a fully tested basis, including rig mobilisation and demobilisation.
The Duyung PSC is in the offshore Indonesian waters of the South China Sea, near the West Natuna Transportation System (WNTS), a gas pipeline which now supplies 400mn ft³/day to Singapore. In June 2017, WNEL drilled the successful Mako South-1 exploration well. A November 2018 resource audit by Gaffney Cline & Associates reported contingent (2C) resources of 276bn ft3 in the Mako gas field.