In an announcement on Dec 30, upstream hydrocarbons player RH Petrogas says that no oil was discovered at Karim-1 exploration well located in the Kepala Burung production sharing contract (PSC), Southwest Papua, Indonesia.
As no oil was discovered, RH will undertake permanent plug and abandonment of the well in line with regulatory requirements.
The oil and gas exploration company says that drilling reached a total depth of 4,293 feet (1,308 metres) measured depth, after spudding on Nov 21. RH added that during drilling, intermediate wireline logging data and gas chromatography indicated “trace to moderate” oil shows, “suggesting the presence” of a hydrocarbon system within the Khaili Limestone interval.
Further drilling continued to the primary objective Kais Limestone. After comprehensive wireline logging was conducted over the Kais Limestone formation, log analysis and pressure gradient data confirmed that the reservoir interval is water bearing.
Expressing his disappointment, RH Group CEO and ED Francis Chang says that the situation illustrated the “inherent risks and challenges” of exploration drillings. He adds, “Nevertheless, the data acquired from Karim-1 will contribute to a refined understanding of the play potential and to support future exploration evaluation in the Arar area.”
RH says the total cost of the Karim-1 exploration well is estimated at US$4.7 million net to the company’s working interest, which will be expensed in the financial year ending Dec 31.
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Moving forward, RH will transfer the drilling rig to the northwest Klagagi-1 well site and commence preparations for exploration drilling there in the coming weeks.
Earlier on Dec 22, RH announced that its subsidiary Petrogas (Basin) has commenced the pre-flush injection stage of the chemical Enhanced Oil Recovery pilot project in the Walio field on Dec 20. The field is also located within the Kepala Burung PSC.
For 3Q FY2025 ended Sept 30, RH announced a net loss of around US$3.77 million, a reversal from the US$3.91 million profit from the previous corresponding period. For the nine months, net profit dropped y-o-y by 71.8% from US$13.1 million to around US$3.94 million.
As at around 10:22 am on Dec 31, the counter was trading at 15.7 cents, down 0.3 cents or 1.9%.
