Bohai VIII Begins Drilling Zircon-1 Well in Salawati Kepala Burung PSC

Singapore-listed RH Petrogas Limited announced Thursday that its wholly owned subsidiaries Petrogas (Island) Ltd. (PIL) and RHP Salawati Island B.V. (RHPSI), have commenced drilling at the Zircon-1 exploration well (Zircon-1) using the Bohai VIII (250' ILS) jackup in the offshore area of the Salawati Kepala Burung PSC (Island PSC), West Papua. Located in water depth of 105 feet (32 meters), the well is planned to reach a total vertical measured depth of 3,953 feet (1,205 meters). It is anticipated that drilling of the well will take approximately 14 days. The well is the first of a multi-well high impact drilling program to be drilled in the offshore area of the Island PSC.

The Zircon prospect was high-graded for drilling after conducting a 173.7-square mile (450-square kilometer) 3D seismic survey in 2010. Zircon-1 is located 2.7 miles (4.3 kilometers) southwest of the Koi-1 discovery (Koi-1). Koi-1 was drilled in the year 2000 and the well flowed 980 barrels of oil per day (bopd) and 2.7 million standard cubic feet per day (MMscf/d) of gas through a drill stem test from the Miocene Kais limestone. Zircon is a larger prospect structurally up-dip and adjacent to Koi and will target the same stratigraphic interval as Koi-1. After completion of Zircon-1, the Bohai VIII will move to drill the Koi-2 well to appraise the Koi-1 discovery. Depending on the results of Zircon-1 and Koi-2, three additional wells may be drilled to further appraise the discoveries.

Francis Chang, vice president Exploration and Production said, “We are excited about the potential of Zircon-1 and Koi-2. There are numerous analogous prospects identified in the 3D area. Offshore Salawati Island has the potential to become a major production hub for the Company.”

The Company through PIL and RHPSI has an aggregate 33.21 percent working interest in the Island PSC. The Island PSC covers an area of 423.6 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 SKKMigas (Satuan Kerja Khusus Minyak dan Gas), has actively explored and produced oil and gas in the working area.


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