Sound Energy Regulatory News (SOU)

31 Aug 2007 14:18

Sound Oil PLC31 August 2007 Sound Oil plc 31st August 2007 Pasundan-1 Operations Update The Pasundan-1 well has reached total depth at 10412 feet and wireline logs arebeing run over the open hole interval below the 7-inch liner from 8391feet to10412 feet. This section includes the Talang Akar Formation objective comprisingpredominantly sandstones, siltstones and shales. Minor amounts of tuff (volcanicrock) were encountered towards the bottom of the well indicating penetration ofthe deepest Jatibarang Formation objective. A number of drill stem tests are planned for Pasundan - 1 in the BaturajaLimestones including the cavernous intervals between 6770 ft. and 6900 ft.Additional tests may be required depending on the the results of the presentwireline logging over the deeper section. The extent and timing of these testswill be decided early next week. Pasundan-1 has been a difficult well to drill particularly because of the veryhigh porosity encountered in the presumed limestone caverns below 6770 feet.Almost 100,000 barrels of drilling fluid (mostly brine) were lost into theseporous zones and this brine contaminated the original formation fluids andpushed them away from the well bore. Fluid samples were taken from the well bore at various points including thezones of cavernous porosity. Surprisingly some samples contained methane, otherlonger chain hydrocarbon gases and some inert gases. Further samples taken overa period of time recovered higher proportions of methane and other gasolinerange hydrocarbons. Although these hydrocarbons are in low quantities, theirvery presence and in increasing amounts, is encouraging given all thecontamination by drilling fluid. Formation fluid samples with similar gascompositions have also been recovered from deeper in the Baturaja Formation andfaint indications of oil have been recorded while drilling in the deeper sectionof the well below 10080 ft. The interpretation of wireline logs previously acquired higher in the well, overthe key Baturaja cavernous intervals, is not reliable due to generally poor holeconditions. Drill stem testing is now the only way to determine what has beenfound. Even then the results may be masked by the large volume of drillingfluids and other contaminants lost during operations. Gerry Orbell, Chairman commented: "These are good results from our first well,Pasundan-1, on the Citarum license. We have spectacular porosity in the BaturajaLimestones and indications of gas and oil. We hope to confirm these by drillstem testing and will be using the best techniques to make sure we giveourselves every chance of finding out whether we have a significant oilaccumulation." Sound Oil plc is a 20% shareholder (through its wholly owned subsidiary MitraEnergia Citarum Limited) in the BPREC operating company that is drilling thePasundan - 1 exploration well, located approximately 50 km southeast of Jakarta,Indonesia. Dr Michael Cope, BSc., PhD, FGS, Head of Exploration at Sound Oil, a qualifiedpetroleum geologist, has reviewed the technical information contained in thisnews release. Contacts: Gerry Orbell, Chairman, Sound Oil plcTel: +44 (0)7903 861145 Dr A Basirov/David Jones, Smith & Williamson Corporate Finance LimitedTel: +44 (0)207 131 4000 Tim Thompson/Nick Melson - Buchanan CommunicationsTel: +44 (0)207 466 5000 This information is provided by RNS The company news service from the London Stock Exchange