Novus stops Singa drilling

Novus stops Singa drilling

MELBOURNE (Reuter): Australia's Novus Petroleum Ltd said yesterday the joint venture partners in the Singa-1 exploration well on the Indonesian island of Sumatra had decided to stop drilling short of the well's target depth.

Last month Novus said the well discovered gas at the top of the main reservoir target at 3,635 metres.

The target depth for the well was 4,115 metres where it was to test a limestone reef known as the Batu Raja formation which hosts oil in the prolific Limau oil trend in South Sumatra.

"The well has not been particularly appropriately engineered to go to these depths," Novus managing director, Bob Williams sold a Securities Institute Association luncheon.

"In the last few days the partners decided the well was not making enough progress, was not cost effective," he said.

Australia's Energy Equity Ltd is the operator of the project and has a 20 percent interest. The other partners are Novus with 15 percent, Amerada Hess Corp with 50 percent and Coparex International SA with 15 percent.