By an OGJ correspondent
BANGKOK, June 29 -- Japan's Mitsui Oil Exploration Co. is preparing to drill two exploration wells to find the extent of an oil reservoir found in northern Thailand.
Drilling will begin in August in the Arunothai structure in Kong Krailat district of Sukhothai province, industry sources said.
In November 2006 Mitsui, through its subsidiary Siam Moeco, gauged 1,254 b/d of 46° gravity crude and 720,000 cfd of gas, at Arunothai-1, the first exploration well, which was drilled on Block L10/43 to 4,800 m TD.
Pending the successful outcome of the two exploration wells, Siam Moeco aims to put the Aruothai field on stream by yearend 2008 at an initial rate of more than 5,000 b/d. Most of the oil will be sold locally.
Mitsui owns a 70% stake in the concession on Block L10/43 and the adjoining Block L11/43, while Seoul-based GS Caltex Corp. holds a 30% share.