Kanematsu starts fourth RI well

Kanematsu starts fourth RI well

TOKYO (Reuter): Japanese trading house Kanematsu Corp has
started drilling at its fourth wildcat well in Indonesia, a
company spokesman said.

"We hope to have enough oil samples from the 11,000 square
kilometer Berau block to analyze by the year-end," he said.

Kanematsu, Japan National Oil Corp (JNOC) and the Overseas
Petroleum Corp together bought a 30 percent concession in the
block from Atlantic Richfield Co in May.

Kanematsu paid 80 million yen, JNOC 20.8 million yen and
Overseas Petroleum 20 million yen, the spokesman said.

Kanematsu has set up a joint venture called KG Berau Petroleum
Ltd to handle the drilling project.

"If the finds from the block are promising, the Japanese
partners may increase their share percentage," the spokesman
added.

He said JNOC would take up to 50 percent share, Kanematsu 40
percent and Overseas Petroleum 10 percent.

Kanematsu is currently drilling in the Kaloshi, Babo and
Wiriagar blocks in Indonesia. Up to now, the yields from the
wildcat wells have not been very favorable, the spokesman said.