KrisEnergy Ltd. (“KrisEnergy” or “the “Company”), an independent upstream oil and gas company, announces that the KS Java Star jack-up rig has commenced drilling of the Mustika-1 exploration well in the KrisEnergy-operated Sakti production sharing contract (“PSC”). Drilling is expected to take approximately 20 days.
Mustika-1, which is targeting the Kujung I formation, is planned to reach a total measured depth at 3,100 feet (945 metres), or 3,000 feet total vertical depth subsea. The location of the well is based on the interpretation of the 1,202 km 2D and 401 sq. km 3D seismic data acquired by the Company in 2014.
KrisEnergy is also the operator of the Bulu PSC, which is adjacent to the Sakti PSC and contains the Lengo gas discovery for which the Company received approval for its plan of development in December 2014.
Front-end engineering design for the Lengo development was completed in the third quarter of 2015. Gas sales negotiations are ongoing and preparations are underway to tender the contract for engineering, procurement, construction and installation.
KrisEnergy was awarded as the operator a 95% working interest in the Sakti PSC in February 2014. The block covers 4,974 sq. km in the East Java Sea over the western margin of the East Java Basin, Bawean Arch and the Muriah Trough. Golden Heaven Jaya Ltd. holds the remaining 5% working interest.
The KS Java Star jack-up rig is owned by KS Drilling Pte Ltd.