Continental Energy Corporation announced that it has received approval of the Indonesian government for an extension of time under the Bengara-II PSC to appraise, assess, and justify the economic feasibility of commercial development of an apparent oil discovery made on the Seberaba prospects during exploratory drilling late last year in the Bengara-II Block, onshore Kalimantan, Indonesia.
Together with the approval Continental’s 18% owned subsidiary Continental-GeoPetro (Bengara-II) Ltd. (“CGB2”) has been asked to submit a work program and budget detailing 2009 appraisal and evaluation plans.
The approval is granted for an additional year to the Bengara-II PSC contract anniversary on 4th December 2009 and may be extended for subsequent years subject further approval based on an annual review of progress and results of appraisal work.
At any time that CGB2 determines commercial development is justified, it may submit a plan of development (“POD”) for the first oil or gas field in the block. Upon approval of such POD by government authorities then the Bengara-II Block will be held for its full 30-year term through 4 December 2027.
The majority 70% shareholder and manager of CGB2, CNPC (Hong Kong) Ltd., has called a shareholders meeting for mid January 2009 to discuss appraisal plans which are expected to include a 3D seismic program.