"On Oct 29 we will start drilling the first well in Selong I," Andhika Anindyaguna, the president of Sugih Energy , said here on Wednesday.
Andhika said based on a study by an international consultant DeGolyer & MacNaughton (D&M), the Lemang block has a reserve of 511 million barrels of oil and 467 billion cubic feet of gas.
He said his company already spent US$12 million on infrastructure built to support the drilling activities in the block including access road to facilitate transport to Selong-1, and to assemble drilling equipment and other heavy equipment.
He said his company already secured the operation license from the Upstream Oil and Gas Regulator (BP Migas) in 2007 to be valid until 2037.
He said his company has a 49 percent participating interest in the block through its subsidiary Eastwin Global Investments Ltd and, PT Hexindo Gemilang Jaya holds the majority 51 percent stake.
Eastwing was acquired by Sugih Energy from Roots Capital Asia Ltd in February 2012 at a price of Rp2.07 trillion.
(Uu.AS/S012/H-ASG)
Editor: Priyambodo RH
Copyright © ANTARA 2012
