LISTED Basic Energy Corp. said drilling of a third well in Java, Indonesia, by PT Basic Energy Solusi has commenced.

“PT Basic Energi Solusi has informed Basic Energy Corp. that it has spud-in its third well,” the company told the stock exchange. To spud an oil well refers to the process of drilling an initial surface hole.

PT Basic Energy Solusi is the foreign investment company in Indonesia owned by Grandway Group Ltd., which is the joint-venture firm formed by of Basic Energy and Petrosolve Sdn. Bhd.

With regard to the two wells earlier drilled, PT Basic Energi Solusi said the first well has “reached its depth” which indicates “good oil saturation,” while the second well “continues operation to reach target depth.”

“Preparation is ongoing for a new program to test and produce the abovementioned wells,” it added. The Department of Energy earlier certified Basic Energy as a renewable-energy developer for geothermal resources.

It holds minority interests in Service Contracts (SC) 47 and SC 53 in Mindoro and in SC 41 in Sulu Sea.

Source: http://www.businessmirror.com.ph/index.php/en/business/companies/31716-basic-energy-starts-drilling-for-third-well-in-java-prospect