Continental Energy: Rig En Route to Bengara-II

Continental Energy Corporation said that the drilling rig contracted to drill in the Bengara-II Block has been mobilized and is underway from Jakarta to the NE Kalimantan drill site.

Indonesian drilling contractor PT Indo Sichuan Petroleum, who was awarded the turnkey drilling contract, has dispatched a land drilling rig for the job.

The rig is rated to drill to a depth of over 4,000 meters and is a new unit fabricated to API specifications near Chengdu, Sichuan Province, China by CNPC Sichuan Petroleum the parent company of contractor PT Indo Sichuan Petroleum. The rig arrived by sea in Tanjung Priok port of Jakarta from Shanghai last month where it was inspected and cleared through customs. Since then it has been prepared and accumulated with other related materials and equipment for the Bengara-II 2007 drilling campaign.

The rig and related equipment has now departed Jakarta's Tanjung Priok port and is at sea aboard barges bound for a remote jungle landing site in the Bengara-II Block near the drillsites. The marine transit time from Jakarta to the landing site is expected to take 7 to 10 days depending upon prevailing weather and sea conditions. The rig is expected to arrive in the Bengara-II Block in the first week of March.

In the meantime site preparation and earth works have commenced at both the Bengara-II Block marine rig landing site and also on the Seberaba-#1 drill site, the first of 4 exploration well drill sites planned for 2007. Upon completion of landing the rig and accumulating related equipment at the marine landing site the rig will be transported overland to the Seberaba-#1 site. Deployment of the rig from the marine landing site to the Seberaba-#1 is expected to take 3 to 4 weeks depending upon weather conditions.

Continental anticipates an early April spud of the long awaited Seberaba-#1 exploration well. Drilling of the 4,200 meter deep Seberaba-#1 is expected to take up to 70 days at a cost of over and 6,000,000.

Continental Energy Corporation is an independent oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia.