Indonesia: AWE’s Liyun-1 Drilling Update

AWE Limited advises that during the week 7″ casing was set in Liyun-1 to a depth of 1656.5 metres. At 0600 hours today the operator was preparing to drill ahead. It is anticipated that the target reservoir in Kujung-1 formation should be intersected in the coming week.

Liyun-1 is an exploration well in the Bulu Production Sharing Contract, which is located in the East Java Basin, offshore Indonesia.

The Liyun-1 well has a planned total depth of approximately 2,570 metres.

The well is being drilled approximately 35 kilometres offshore in a water depth of approximately 55 metres. Liyun-1 is targeting the oil potential of the Kujung I reef carbonates, currently producing in acreage to the east of the Bulu Production Sharing Contract.

The participants in the Bulu Production Sharing Contract are:

AWE Limited 42.5%

Pearl Oil (Satria) Ltd (Operator) 42.5%

PT Satria Energindo 10.0%

PT Satria Wijaya Kusuma 5.0%


Source: Awexplore,July 8, 2010;