Sonoro Energy acquired promising oil and gas acreage from Stockbridge Group in 2016 and set about drilling what proved to be a discovery. The company commenced drilling the LG-1 Updip appraisal well in October 2017, with site operations lasting 50 days, in part due to difficult drilling conditions and numerous gas shows and kicks.
Sonoro attempted to test the well in an open hole using a formation testing tool. High porosity and weakly consolidated Miocene sands saw considerable sand and fluid ingress into the well and testing was not successful. It was determined that further testing in an uncased well was potentially dangerous and then cased and cemented and suspended the well. This operation was approved by the regulator, SKKMIGAS.
The permit however was at the end of this term and a renewal was required to perforate and test the well with a work-over rig.
However, the Ministry of Energy in Indonesia declined to extend the Budong Budong production-sharing contract. It would appear that Sonoro has undertaken the approved program and made a discovery. The decision to not extend the PSC does not help the international image of the country and the Minister should reconsider.