RH Petrogas Limited (the Company) referred Thursday to its announcement issued Dec. 2, 2013 and would like to provide an update on the drilling of the Koi-2 appraisal well (Koi-2) in the Salawati Kepala Burung PSC (Island PSC), West Papua, Indonesia.
Located in shallow water depth of 104 feet (32 meters), the well successfully reached its total vertical depth of 4,685 feet (1,428 meters) Dec. 30, 2013. During drilling of the Kais limestone, oil shows were observed from cutting samples. As a result, two conventional cores with total length of 50 feet were cut from the well. Both cores encountered oil shows. Logging operation is currently being carried out and production testing will follow if log analysis confirms the presence of hydrocarbon zones.
The Company through its wholly owned subsidiaries Petrogas (Island) Ltd. and RHP Salawati Island B.V. has an aggregate 33.21 percent working interest in the Island PSC. The Island PSC covers an area of 423 square miles (1,097 square kilometers). The other partners in the Island PSC are PetroChina International Kepala Burung Ltd. (16.79 percent) and PT Pertamina Hulu Energi Salawati (50 percent). The Island PSC is operated by JOB Pertamina-PetroChina Salawati, which is a joint operating body formed between Pertamina and PetroChina. The consortium, as contractor of Indonesian government operating under the supervision of SKK Migas (Satuan Kerja Khusus Minyak dan Gas), has actively explored and produced oil and gas in the working area.
Oil and gas exploration, development and production are expensive, high-risk and complicated operations. Shareholders and investors are advised to exercise caution when dealing in the shares of the Company.
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