Continental Energy Outlines 2003 Drilling Program

Continental Energy Corporation announced that its Continental Energy Yapen Ltd. unit has finalized and presented its annual work program and budget for calendar year 2003 in the "Yapen Block" production sharing contract area offshore Irian Jaya, Indonesia to BPMIGAS, the Oil & Gas Concession Regulating Body of the Republic of Indonesia. The overall objectives of the 2003 annual work program are:

  • Complete processing of 2D-HiRes seismic data acquired during 2001;
  • Reinterpret seismic over the entire block incorporating newly acquired seismic data from 2001 with older vintage data, and
  • drill one exploratory well on the most highly promising prospect identified at the time.

Expenditures for one exploratory well are budgeted to commence in 4th quarter 2003. The actual spud date of the well is dependent upon favorable weather conditions in the Yapen Block, drill ship or semisub rig availability and the interpretation results of the newly acquired seismic. Total well cost is estimated to be US$ 7,000,000 completed and tested and US$ 6,250,000 dry hole. Due to the remote location of the drilling site and need for specialized drilling equipment considerable advance planning of this well is required once the actual location is determined based on 2003 seismic interpretation work.

Continental's 60% owned subsidiary Continental Energy Yapen Ltd. owns a 10% carried interest in the Yapen Block after its recent farm out of 90% interest and the block operatorship to PT Exspan Indonesia. See Continental's Press Release dated November 5, 2002.

In a related development, Continental Energy Yapen Ltd. has received approval from BPMIGAS of its application to BPMIGAS to postpone a mandatory relinquishment of 25% of the area of the 9,500 square kilometer Yapen Block concession area from end September 2002 until end of March 2003.