Continental Energy Awards Seismic Acquisition Contract For Bengara-II Block In Indonesia

Published: 02-Jun-2009

By: Staff Writer Staff Writer Staff Writer

Continental Energy Corporation (Continental Energy) said that its 18% owned subsidiary, Continental-GeoPetro (Bengara-II) Ltd. (CGB2) has granted a contract to a local seismic acquisition contractor to carry out a seismic acquisition program in the Bengara-II block situated on the island of Borneo in East Kalimantan, Indonesia. CGB2 plans to acquire a total of 120 square kilometers of 3D seismic and 844 line kilometers of 2D seismic at an expected acquisition cost of $28.5 million.

The main objective of the 3D seismic program is to further describe and delineate the Seberaba oil discovery and the Makapan gas/condensate discovery. CGB2 is concentrating on a joint development of Makapan gas with Seberaba oil to achieve economies of scale and provide a gas source for fuel, pressure maintenance, and artificial lift of oil.

A huge part of the 2D seismic program is also planned to provide additional definition of other exploration prospects in the Bengara-II block to firm up new exploration drilling targets for the 2010 drilling program. These prospects comprise the Galiadap structure underneath the oil lake seep in the southern region of the block.

A huge part of the seismic acquisition program shall be performed in the logistically difficult and higher cost transition zone between a shallow marine offshore and onshore setting. The eastern portion of the block is situated mostly onshore but partially offshore in the shallow waters of the Sulawesi Sea and the Bulungan river delta.

An advance party has been organized to the spot to make arrangements for necessary permits and prepare for the arrival of survey, line-cutting, and shot-hole drilling crews. CGB2 hopes to finish the entire acquisition program by end first quarter 2010 and begin appraisal and additional exploratory drilling in 2010.

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