Indonesia

Continental Energy Corp., Dallas, said its 18% owned Continental GeoPetro (Bengara-II) Ltd. unit let a $28.5 million contract for 120 sq km of 3D seismic and 844 line-km of 2D seismic on the Bengara-II block in East Kalimantan, Indonesia.

By OGJ editors
HOUSTON, June 2 -- Continental Energy Corp., Dallas, said its 18% owned Continental GeoPetro (Bengara-II) Ltd. unit let a $28.5 million contract for 120 sq km of 3D seismic and 844 line-km of 2D seismic on the Bengara-II block in East Kalimantan, Indonesia.

Main goal of the 3D program is to further define and delineate the Seberaba oil discovery and the Makapan gas-condensate discovery. The company is eyeing 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.

A large part of the 2D program is intended to better define other exploration prospects in the block to firm up new exploration drilling targets for the 2010 drilling program. These prospects include the Galiadap structure underneath the "oil lake" seep in the southern part of the block.

Much of the seismic work will be in the transition zone of the Bulungan River and Sulawesi Sea. Completion is set for the end of the first quarter of 2010.

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