Hakuryu-5 rig on tow to Bontang PSC

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces that the Hakuryu 5 semi-submersible rig has departed Singapore and is under tow en-route to the Bontang PSC, East Kalimantan, Indonesia. It is expected to take approximately 12 days for the rig to arrive on location. Once on location the rig will be used to drill the Angklung-1 exploration prospect. Angklung is forecast to contain mean prospective resources of 125 MMboe and the well will take approximately 39 days to drill on a dry hole basis.

Angklung Discovery

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces that the Angklung-1 exploration well in the Bontang PSC, East Kalimantan, Indonesia, has been completed as an oil and gas discovery. Salamander is operator of the Bontang PSC with a 100% interest. The Angklung-1 well was drilled by the Hakuryu-5 semi submersible rig to a total depth (“TD”) of approximately 2,850 metres true vertical depth sub-sea (“TVDSS) and encountered 23 - 27 metres of net gas pay in a high quality Lower Pliocene sandstone unit at 1,850 metres TVDSS. Log evaluation indicates that the formation has porosity of up to 30% and permeability of around 50 millidarcies. A drill stem test was conducted across a 10 metre interval of gas-bearing reservoir which flowed at a surface equipment constrained rate of approximately 24 million standard cubic feet per day. Initial analysis suggests that the gas is dry without any indication of CO2 or H2S. In the deeper section, the well encountered a gross 256 metre section of inter-bedded sandstones and shales of Upper Miocene age. Following petrophysical evaluation of a full suite of wire-line logs, this interval is interpreted to contain a net 120 metres of oil-bearing sandstones. A comprehensive sampling and pressure testing programme recovered samples of light oil and gas, though the sandstones were proved to be tight, having low permeability, and are not considered net pay at this location. The well reached TD in a sequence of Upper Miocene carbonates with strong gas shows. Salamander has acquired more than 650 km2 of 3D seismic in the Bontang PSC over the Angklung structure and surrounding prospects. The Angklung trend extends into the neighbouring SE Sangatta block (Salamander 75%, operator) where a 475 km2 3D seismic survey is currently being acquired. The well has been plugged and abandoned as a discovery. The Group will now conduct further technical work to evaluate both the resource potential of the Angklung discovery and the large inventory of prospects within Salamander’s acreage that exhibit similar seismic attributes to the pay section seen in Angklung-1 well. Work will also be undertaken to further understand the Upper Miocene oil play fairway in the area, highlighted by the Angklung-1 well.

'Hakuryu-11' rig on-tow to Balqis-1 well location in Indonesia

Nido Petroleum Limited (ASX: NDO) (“Nido” or the “Company”) has been advised by Operator Lundin Petroleum that the Hakuryu-11 jack-up rig has commenced the tow to the Balqis-1 location in the Baronang Production Sharing Contract (‘PSC’), Republic of Indonesia. The Balqis-1 well will be followed by the Boni-1 well which will be drilled as an exploratory side-track well from the same surface location as Balqis-1 (refer Location Map). Nido will provide a further update to the market on the commencement of drilling operations at the Balqis-1 well.

Lundin Petroleum spuds exploration well on the Balqis prospect in the Natuna Sea

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has commenced the exploration drilling in the Baronang PSC, Natuna Sea, Indonesia using the drilling rig Hakuryu 11. Balqis-01 will be followed by a sidetrack, Boni-01. Balqis-01 is a wildcat oil exploration well designed to test the hydrocarbon potential of Tertiary sands draped over a prominent Basement high. The main objectives of the well are Oligocene fluvial sandstone reservoirs in stacked four-way dip closures. Lundin Petroleum estimates the Balqis prospect to have the potential to contain unrisked, gross, prospective resources of 47 million barrels of oil equivalent (MMboe). The planned total depth is 2,130 metres below mean sea level (MSL) and the drilling and evaluation is expected to take approximately 20 days. The drilling of Balqis-01 shall be immediately followed with the drilling of Boni-01 as a side track to the Balqis-01 vertical well with an offset distance from Balqis-01 (at TD) of 820 metres drilled to test a deeper independent stratigraphic play concept. Boni-01 is designed to test the hydrocarbon potential of early to late Oligocene fluvial sandstone reservoirs in stacked stratigraphic traps against a prominent basement high. Lundin Petroleum estimates the Boni prospect to have the potential to contain unrisked, gross, prospective resources of 55 MMboe. The planned total vertical depth is 2,300 metres below MSL and the drilling is expected to take approximately 5 days. Lundin Petroleum, through its wholly owned subsidiary Lundin Baronang BV, is the operator and has a 90 percent working interest in the Baronang PSC. Partners are Nido Petroleum Limited with 10 percent working interest. Lundin operates five PSCs in Indonesia, namely Baronang, Cakalang, Gurita, South Sokang and Cendrawasih VII.

'Hakuryu-11' completes drilling of the Balqis-1 well in Indonesia

Lundin Petroleum announces that the exploration drilling of the Balqis prospect in the Baronang PSC, Natuna Sea, Indonesia has been completed. Preliminary analysis of wireline logs indicates that the well encountered the targeted Oligocene Upper and Lower Gabus Formation sandstone in well developed reservoirs but no hydrocarbons were encountered. The Balqis-1 well reached basement at a total depth of 2,109 metres below mean sea level (MSL). The lower section of the Balqis-1 will now be plugged and abandoned and the drilling of the Boni-1 exploration side-track well will commence below the Balqis-1 9 5/8” casing shoe. The Boni-1 side-track well will test the stratigraphic on-lap play of the Lower Gabus Formation sandstones against the Basement approximately 800 metres to the west of the vertical Balqis-1 well. Lundin Petroleum estimates the Boni prospect to have the potential to contain unrisked, gross, prospective resources of 55 million barrels oil equivalent (MMboe). The planned total vertical depth is 2,300 metres below MSL and the drilling is expected to take approximately 5 days. Nido Petroleum Limited exercised its option in accordance with the farm-in agreement to increase its participating interest from 10 percent to 15 percent in the Baronang PSC on the 24th February 2014. The five percentage point increase remains subject to governmental approval. Lundin Petroleum, through its wholly owned subsidiary Lundin Baronang BV, is the operator and has a 85 percent working interest in the Baronang PSC. Partners are Nido Petroleum Limited with 15 percent working interest. Lundin operates five PSCs in Indonesia, namely Baronang, Cakalang, Gurita, South Sokang and Cendrawasih VII.

'Sagadril 1' completes Iran contract and enters shipyard

The jack-up rig 'Sagadril 1', having completed the contracted operations for Pars Oil and Gas Company (POGC) in the South Pars gas field offshore Iran, was released by POGC and entered Lamprell shipyard in the UAE on 4th March, 2014. The rig is scheduled to undergo maintenance works for approximately 4 months in preparation for a new prospect being sought outside Iranian waters.

Lundin completes Boni-1 well in the Natuna sea, offshore Indonesia

Lundin Petroleum AB (Lundin) announces that the exploration drilling of the Boni prospect in the Baronang PSC, Natuna Sea, Indonesia has been completed. On 11th March 2014 drilling of the Boni-1 well reached Total Depth at 2,214 metres below mean sea level in the granitic basement as per the drilling programme. Preliminary analysis of LWD logs indicates that the well encountered the targeted Oligocene Lower Gabus Formation sandstone in well-developed reservoirs but no hydrocarbons were encountered. The Boni-1 side-track will be permanently plugged and abandoned in conjunction with Balqis-1. Rig contract owner Premier Oil has exercised its option to take the ‘Hakuyru-11’ rig following the drilling of the Balqis-1 and Boni-1 wells. The Gobi-1 exploration well, located in the Gurita PSC Republic of Indonesia, will now be drilled in the fourth quarter of 2014. Lundin, through its wholly owned subsidiary Lundin Baronang BV, is the operator and has an 85 percent working interest in the Baronang PSC. Partner Nido Petroleum Limited has a 15 percent working interest, where the recent 5 percent increase remains subject to governmental approval. Lundin operates five PSCs in Indonesia, namely Baronang, Cakalang, Gurita, South Sokang and Cendrawasih VII.

Keppel awarded modification contract for 'Hakuryu-5'

Japan Drilling Company (JDC) and Keppel FELS (Keppel) have signed a contract to carry out repair and modification work on JDC’s ‘Hakuryu-5’ semisub drilling rig from April to August 2014. The work will be carried out upon completion of the unit’s contract with Petronas in Malaysia, after which the unit will be mobilised to Singapore. The contract was signed on the 15th January 2014 by representatives of both JDC and Keppel. Both companies have worked together in the past with Keppel previously upgrading the ‘Hakury-10’ rig in 2012.

Japan Drilling Company awards US$210 million jackup contract to Keppel

Keppel FELS Limited (Keppel FELS) has secured a contract worth about US$210 million from Japan Drilling Company (JDC) to build a KFELS Super B Class jackup rig. Slated for delivery in the first quarter of 2013, the rig will be JDC's first newbuild rig order in six years and Keppel FELS' first for JDC.

Gobi-1 well set to spud in late September

Nido Petroleum Limited (Nido) is pleased to advise that the Operator of the Gurita PSC, offshore Indonesia, Lundin Gurita BV has advised that the rig for the Gobi-1 well will become available to the Joint Venture in September 2014. On the basis of Operator’s advice, the Company now expects to spud the well in late September 2014. Nido currently has a 10% working interest in the Gurita PSC. The Gobi-1 well is expected to be spudded using the ‘Hakuryu-11’ jackup rig.

Lundin advises that Gobi-1 well spud date has been pushed back

Nido Petroleum Limited (Nido) has advised that the operator of the Gurita PSC, offshore Indonesia, Lundin Gurita BV (Lundin) has informed the joint venture that the rig for the Gobi-1 well will now become available to the Joint Venture in early October 2014. On the basis of Lundin’s updated advice, the Gobi-1 well is now expected to spud in mid-October 2014. The ‘Hakuryu-11’ jackup rig is the unit set to drill the Gobi-1 well after it has completed the Ratu Gajah well for Premier Oil in Indonesia. Following the completion of the Gobi-1 well, ‘Hakuryu-11’ will return to work for Premier Oil by drilling the Anoa Deep appraisal well in Indonesia.

'Hakuryu 11' mobilises to drill Gobi-1 well

Nido Petroleum Limited (Nido) has been advised by Lundin Gurita B.V., Operator of the Gurita Production Sharing Contract (‘PSC’) offshore Republic of Indonesia, that the ‘Hakuryu 11’ jack-up rig has commenced mobilisation to the Gobi-1 well location. Nido will update the market once the ‘Hakuryu-11’ commences drilling operations at the Gobi-1 well. Nido currently has a 10% working interest in the Gurita PSC.

Lundin spuds Gobi-1 well in Indonesia

Lundin Petroleum spuds exploration well on the Gobi prospect in the Natuna SeaLundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has commenced exploration drilling in the Gurita PSC, Natuna Sea, Indonesia. Gobi-1 is a wildcat oil exploration well designed to test the hydrocarbon potential of Oligocene and Early Miocene stacked fluvial reservoirs in a 3-way fault dependent structure in the Jemaja Basin. Lundin Petroleum estimates the Gobi prospect to have the potential to contain unrisked, gross, prospective resources of 25 million barrels of oil equivalent (MMboe). The planned total depth is 2,400 metres below mean sea level (MSL) and the drilling and evaluation is expected to take approximately 30 days using the ‘Hakuryu-11’ rig. Lundin Petroleum, through its wholly owned subsidiary Lundin Gurita BV, is the operator and has a 90 percent working interest in the Gurita PSC. Partner is Nido Petroleum Limited with 10 percent working interest.

Lundin comes up dry with Gobi-1

Lundin Petroleum AB (Lundin Petroleum) announces that the exploration drilling of the Gobi prospect in the Gurita PSC, Natuna Sea, Indonesia has been completed.Gobi-1 wildcat exploration well was drilled to a final depth of 2,373 meters below mean sea level (MSL) using the Hakuryu-11 drilling rig. The well was drilled through the Miocene to Oligocene primary and secondary objectives and reached basement as planned. Gobi-1 encountered well developed sandstone reservoir, but no hydrocarbon shows were encountered and the well is being plugged and abandoned as a dry hole. Lundin Petroleum, through its wholly owned subsidiary Lundin Gurita BV, is the operator and has a 90 percent working interest in the Gurita PSC. Nido Petroleum Limited is a partner with 10 percent working interest.

BOT Lease Co., Ltd places another newbuild jackup order

Sembcorp Marine is pleased to announce that its subsidiary PPL Shipyard has secured a USD240 million contract to build a new jack-up drilling rig from BOT Lease Co., Ltd (“BOTL”), a leasing company of The Bank of Tokyo-Mitsubishi UFJ which is under the umbrella of Mitsubishi UFJ Financial Group. The contract value may be higher on additional specification requirements to be negotiated among the parties involved. Scheduled for delivery at the end of October 2016, the new rig (to be named Hakuryu-14) will be built based on PPL Shipyard’s established proprietary Pacific Class 400 (PC 400) design. This latest generation of high-specification jack-up rigs is capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 35,000 feet. The rig design features two million pounds hook load and the latest drilling equipment for improved drilling efficiencies along with offline handling features and simultaneous operations support. It will have accommodation for 150 persons with full catering and amenities. This will be the second jack-up rig that PPL Shipyard is building for BOTL, with Japan Drilling Co., Ltd (JDC) once again being the project coordinator as well as providing the project management team during the rig construction phase. The first unit, named Hakuryu-12, is presently under construction with contractual delivery at end January 2015. PPL Shipyard also built the Hakuryu-10, a PPL Shipyard proprietary Pacific Class 375 series, for JDC - that unit was delivered in June 2008 and is currently chartered to Total E&P Indonesia.

Japan Drilling & UMW Drilling extend joint venture

Further to the announcement dated 11 March 2005 made by UMW Holdings Berhad (“UMW”), the Board of Directors of the Company wishes to announce that the Company has recently signed an Addendum to the JVA ("Addendum") with Japan Drilling Co., Ltd. (the Company and Japan Drilling Co., Ltd. hereinafter referred to as "the Parties") to confirm the mutual agreement of both Parties to renew the terms of the JVA for a further period of 5 years after elapse of the first 10 years. All other terms of the JVA remain unchanged. Consequent to the signing of the Addendum , the Company has also signed the Addendum to the Rig-Owning Agreement , with Japan Drillig Co., Ltd, JDC Panama, Inc., and UMW Drilling Co., Ltd (reffered to as "these parties") for the renewal of the term of the Rig-Owning Agreement dated 11 March 2005 ("Agreement") signed between these Parties. The Parties agree that the term of the Agrement set out in Article 14.1 therein, shall be renewed for a further 5 years after elapse of the first 10 years.

Dana Gas contracts 'Sagadril 2'

Japan Drilling Company Inc. (“JDC”) has announced a new drilling contract for its jackup rig Sagadril 2. The unit which is currently in the shipyard in Sharjah (UAE) emirate has been contracted by Dana Gas Exploration FZE (“Dana”) for drilling on the Zora field in the emirate. The contract is expected to last up to 70 days and is scheduled to begin from 19th March to 19th April 2015.

HAKURYU-10 receives Total E&P 2015 Best Rig Performance Award

Japan Drilling Company (JDC) jack-up rig HAKURYU-10 received French Oil Major Total E&P 2015 Best Rig Performance Award, outperforming 45 other rigs in Total E&P worldwide operations. The award ceremony took place on 7 June aboard HAKURYU-10, offshore Balikpapan, Indonesia. DC President Yuichiro Ichikawa expressed his pride in the HAKURYU-10 achievement to Total E&P representatives. He expressed his sincere gratitude for the tremendous support and appreciation for the superior communication between the two parties that resulted in the safe and smooth operations from the July 2012 commencement of the campaign. Mr. Ichikawa said that he intends to implement specific efficiency practices of HAKURYU-10 to further improve operational performance of JDC Group rigs. In his closing remarks Mr. Ichikawa said he looks forward to working together with Total E&P at the nearest opportunity.