RH Petrogas starts drilling new well in Indonesia’s Papua block

It targets existing reserves whilst testing for additional resources.

RH Petrogas has started drilling a new well in Indonesia as it looks to expand gas development and explore for additional hydrocarbon resources under the Kepala Burung Production Sharing Contract (PSC).

In a Singapore Exchange (SGX) filing, the company said its 82.65%-owned subsidiary, Petrogas (Basin) Ltd., began drilling the Northwest Klagagi-1 (NWK-1) well on 25 June in Southwest Papua.

The well is located in the Arar block, about 15 km northeast of the Arar production cluster and will be drilled to a planned depth of about 6,700 feet (2,000 metres) using the group's own rig and is expected to take around 36 days.

RH Petrogas said NWK-1 is designed as both a development and exploration well.

It will first target gas resources in the upper Kais Formation before drilling deeper to assess hydrocarbon potential in the lower Kais Formation, the Sirga Formation, and the Basement.

The well is part of the company's work commitment under the Kepala Burung PSC.

The project was originally scheduled to begin earlier this year but was delayed by intermittent road access blockages and heavy rain that affected access to the well site.

During the delay, RH Petrogas deployed its drilling rig for workover and well services at nearby wells in the Arar block.

Group CEO and executive director Francis Chang said the project aims to advance the development of existing gas resources whilst assessing additional opportunities within the contract area.

"Although drilling of the well has commenced later than initially planned, the delay created an opportunity to deploy the rig for well intervention activities in the nearby Arar block," Chang said.

He added that workovers on three wells in the Arar block were completed successfully and resulted in higher production.

RH Petrogas is a Singapore-listed upstream oil and gas company focused on exploration, development, and production in ASEAN. The group currently operates two producing assets in Indonesia.