Java update is sweet music to Sound Oil

published 10 July 2012

The latest operational update from its activities in Indonesia was sweet music to the shareholders of Sound Oil, the upstream oil and gas company.

The group, which also has assets in Italy, reported that the Jatayu-1 exploration well at its 20 per cent owned Citarum block, has delivered extremely high mud log gas readings and around 600 pounds per square inch overpressure.

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The firm said gas shows were still present at the bottom of the previous sidetrack at around 5,920 feet true vertical depth, where the drill-pip got stuck.

The company will now drill ahead below the casing to around 6,000 ft and obtain wire-line logs over the section of interest.

Dependent on logging results a decision will be taken as to whether to target the Parigi objective, some 1,700 feet deeper, or to stop drilling and test the well.

Gerry Orbell, Sound Oil's Chairman and Chief Executive said: "The Jatayu prospect is proving a significant exploration project for Sound. Already we have encountered a gross gas column comparable with some of the larger surrounding fields in a secondary objective above the main target zone.

"The successful installation of the liner has isolated the problematic section which necessitated the previous sidetrack operations. The Jatayu well will be followed by exploration wells at Geulis and Cataka on the Citarum permit, all of which will be drilled by the same rig."

The firm also reported on the West Kerendan exploration well at the 5% owned Bangkanai, Java. This has suffered some minor delays in shipping the equipment along the Barito River to the Luwe Hulu staging area in Kalimantan, but the company said the rig is now 40% rigged-up and operations are expected to start in August.

The share price rose 2.33% to 1.10p by 08:29.

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