Uchenna Izundu
International Editor
LONDON, Dec.22 — The Indonesian government granted GeoPetro Resources Co. a 1-year extension to 2010 to submit its work program and 2009 budget to appraise and evaluate commerciality of an oil discovery on Bengara-II Block, Tarakan basin, onshore East Kalimantan.
The oil discovery was made last year on the Seberaba prospects, and the approval could be extended for subsequent years subject to approvals based on an annual review of progress and results of appraisal work, said GeoPetro Resources.
GeoPetro's 12% owned subsidiary Continental-GeoPetro (Bengara-II) Ltd. (CGB2) will carry out the work.
If CGB2 decided to move to development, it can draw up a commercial development plan. If the government approves the development plan, Bengara-II Block will be held for a 30-year term through December 2027.
"The majority 70% shareholder and manager of CGB2, CNPC (Hong Kong) Ltd., has called a shareholders meeting for mid January 2009 to discuss appraisal plans which are expected to include a 3D seismic program," GeoPetro said.
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