UNO, DOS AND RAYU DEVELOPMENT


Indrillco has made a joint venture company, Indrillco Hulu Energy Ltd (IHE) with Samudra Energy Ltd to operate the Uno, Dos and Rayu (UDR) fields under an operation agreement with Pertamina EP. The agreement was signed on December 2007 for period of working contract up to 20 (twenty) years.


Rayu Utara field was discovered in early 2009. The well encountered approximately 90 feet of hydrocarbon column (gas) within Baturaja reservoirs. One subsequent appraisal wells, the RUT-1 and RUT-2, successfully in delineated and proved gas petential within this field and has been tested from a sequence of Drill Stem Tests (DST) conducted in Baturaja carbonate formation. The gas can be produced of 7 MMSCFD for over 10 years by well head pressure at 300 Psi. The Initial Gas In Place (IGIP) is 65 BCF (1P) and Reserves is 53 BCF (1P). Currently, we are in the process to finalize the Plan of Development (POD) and Gas Sales. IHE plans to drill 3 (three) wells from 3 prospects of oil in the Northern flank of the UDR field. They are: Siriang A well (Siriang prospect), Petunang A well (Petunang prospect) and Beliti A well (Beliti prospect). The prospect of oil discovery is expected from Talang Akar (sandstone) formation. Target to the Talang Akar formation objective at average depth of 1,150 meters and total expected reserves about 208 MMBO. Also, in the end of this year, IHE plans to run about 65 km 3-D seismic in Northern flank.