The Great Wall Drilling Company Rig 93, Sound's preferred drilling rig, is currently mobilizing from East Java to the laydown area close to the wellsite in West Java. Despite the very wet conditions the mobilization is 95% complete. The rig will be handed over to the operator shortly, following routine certification by the Indonesian authorities at the end of the current extensive overhaul.
Pasundan No. 1 is expected to commence drilling on 28 March although this may slip a few days if the remaining critical rig items from China are not on site by early March. The current operation is setting the 30-inch conductor pipe prior to spudding the well.
The wellsite has suffered from the local extreme weather conditions and some land slippage has occurred which will require 7 days remediation prior to drilling. Some concrete piling of the site will be needed during drilling operations.
Pasundan No. 1 well is programmed to a total depth of 10,322 feet with a prospective objective at approximately 6,300 feet and deeper target horizons below 8,500 feet.
A second well, Kujang No. 1, will be drilled back to back with Pasundan and will be located on a separate structure some 8 km to the north.
Prospective recoverable resources for the Pasundan and Kujang prospects are 255 and 322 billion cubic feet of gas, respectively (P50 cases).
It is anticipated that an $11 million dollar 2D seismic program extending to 850 km will be acquired during the year, over a number of prospective areas across the Citarum acreage.
Sound holds a 20% interest in BPREC, the 100% owner and operator of the Production Sharing Contract.
Bangkanai Production Sharing Contract - Kalimantan, Indonesia
Sound has recently undertaken seismic interpretation studies over the Kerendan Gas Field area in the central part of the Bangkanai PSC. As a result, a large new prospect has been identified underlying the existing Kerendan Limestone gas accumulation. The new prospect may contain up to 540 billion cubic feet (P10*) of recoverable gas resources. A future well will be designed to pass through the known Kerendan Limestone gas accumulation at 9,000 feet, containing reserves of 238 billion cubic feet (Proven + Probable), on its way down to the deeper prospect at around 14,000 feet.
It is anticipated that a new seismic program will be acquired over a number of areas during the summer including the Kerendan Gas Field, the potentially large Jupoi prospect and a number of leads.
Sound Oil plc has a 34.99% interest in the license through its wholly owned subsidiary Mitra Energia Ltd.
The Board of Directors have today granted options over the Company's ordinary shares as follows: Dr Orbell, 2,000,000; Mr Rachmantio 1,250,000; Mr Heath 1,000,000. The options' exercise price will be that of Sound's market price per share at today's close. The options will be vested yearly in 33.3% tranches during the next three years and expire in ten years.
Dr Michael J Cope, Head of Exploration, Sound Oil plc, has reviewed and approved the operational update information contained in this announcement relating to Sound Oil's Citarum and Bangkanai PSCs. Dr Cope holds BSc and PhD degrees in geology from the University of London and has been a member of the American Association of Petroleum Geologists since 1987 and is a Fellow of the Geological Society of London.
Prospective resources, consistent with SPE (The Society of Petroleum Engineers) guidelines, are quantified in terms of the statistical probability to find a given recoverable hydrocarbon (oil or gas) volume in a prospective structure considering all the geological variables involved. The P50 figure indicates a 50% chance of finding a given volume and is generally considered as the best estimate. The P10 figure indicates a 10% chance of finding a given volume and is generally used to express the high estimate.
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