Sound Oil to Commence Testing at Pasundan-1

The Pasundan-1 well reached a total depth of 10412 feet on 29 August 2007. Following wireline logging and other bottom-hole operations the drilling phase of the well was completed on 7 September, 122 days since spud. Following analysis of all wireline logs and subsurface samples the Citarum PSC partnership has made the decision to evaluate the hydrocarbon potential of Pasundan-1 with three drill stem tests.

The well has been plugged back to 8382 ft for testing of the Baturaja Formation carbonates through the previously set 7-inch liner.

Testing will be carried out with the existing Great Wall Rig 93 over two zones in the lower part of the formation (8300-8380 ft and 8020-8070 ft). Operations for these first two tests are expected to take 18 days.

It is the current intention of the Partnership that testing of the higher cavernous zone (6770-6900 ft) will be carried out at a later date with another rig. This pause in operations will allow time to resolve several technical issues associated with testing this zone. Because of the large amount of losses of drilling fluid and lost circulation material to this zone any hydrocarbons present may have been flushed away from the borehole during the drilling operations. A testing and environmental program must be designed to recover these large volumes of losses and ensure their safe surface handling. Additionally during this time the subsurface conditions will be allowed to equilibrate and allow any hydrocarbons to flow back naturally towards the borehole and reduce the amount of fluid to be recovered for their sampling.

Sound Oil plc is a 20% shareholder in the BPREC operating company that is drilling the Pasundan-1 exploration well, located approximately 50 km southeast of Jakarta, Indonesia.

Dr Michael Cope BSc PhD CGeol, Head of Exploration at Sound Oil, a qualified petroleum geologist, has reviewed the technical information contained in this news release.

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