Interra Resources Spuds First Well in Kuala Pambuang Block

Southeast Asian independent oil and gas exploration and production player Interra Resources said has started drilling its first onshore well in the onshore/offshore Kuala Pambuang block, in southern Central Kalimantan, Indonesia, where seismic data analysis and historical data point to high-quality prospects, the company said on Monday.

Interra Resources said initial interest in this block arose from drilling and production reports that there were numerous oil producing wells in the area operated by a Royal Dutch Shell subsidiary prior to World War II.

Based on the data obtained, there are three prospective oil reservoirs – one shallow clastic sandstone (Warukin formation) and two deeper limestones (upper and lower Berai formation). The lower Berai formation had the highest oil influx rate both in testing and subsequent production, and hence, Interra's primary target. The Berai formation potential reservoirs also correlate with more recent wells drilled in 1971 approximately 200 kilometers to the east of the drill site.

The KP-1 well underway will be drilled vertically to a depth of 1,100 meters with the use of a hired rig, where data points to expected intersections with a number of prospective oil reservoirs.

(Image: Interra Resources)

(Image: Interra Resources)

Interra Resources has a 67.5% interest in the exploration and operating rights to the 1,631 square kilometer Kuala Pambuang block.

Following the grant of the exploration rights by Indonesia, Interra Resources began studying available data, and also acquired technical data based on the latest processes in advanced subsurface exploration. Using high quality 2D seismic data, detailed studies indicate potential oil reservoirs at depths of 900 to 1,100 meters below the surface. Alongside review conducted by independent experts, Interra Resources identified several high-quality drilling prospects.

Interra Resources’ Chief Executive Officer Marcel Tjia said, “With high quality data acquired from using advanced subsurface exploration technology, the results point to an exciting prospect. The Kuala Pambuang well represents the first of many opportunities and the drilling affirms Interra Resources’ multi-disciplinary approach to proving oil reservoirs at KP-1.”

The company said, pending drilling results, it is ready to embark on the next step of directing investments and deploying infrastructure with a view to commercial production.