PT Basic Energi Solusi of the Grandway Group Ltd., the joint venture company of Basic Energy and Petrosolve Malaysia, is conducting drilling activities for two wells in Java, Indonesia.
Basic owns 70 percent of Grandway Group and 65 percent of PT Basic Energi Solusi.
“PT Basic Energy Solusi informed Basic Energy that on November 25, 2013, Well D-07B had reached the target Total Depth [TD] of 400 meters. Shortly thereafter, the drilling contractor will prepare the well for a series of tests and eventually proceed to production testing,” Basic Energy said in a disclosure to the Philippine Stock Exchange.
On the other hand, PT Basic Energi Solusi’s Well D-13 is at 324 meters and is expected to reach target TD of 390 meters.
Another eight wells are to be drilled in 2014, Basic Energy said.
In July, PT Basic Energi Solusi informed Basic Energy that it is scheduled to spud the two wells assigned to it by Petrosolve on July 16, 2013, and on July 19, 2013.
Basic Energy explained that the spudding will formally start the drilling operations of PT Basic Energi Solusi in Central Java, Indonesia, which may take two to three months to reach the targeted depth and produce oil from the two drilled wells.
For this year, listed Basic Energy has earmarked $2.5 million in capital expenditure, which will be used for the firm’s geothermal projects within the country and its joint venture in Indonesia.
This capital expenditure, according to a top company official, is significantly higher than what was invested in the previous year.