PUBLICLY listed Basic Energy Corp. said PT Basic Energi Solusi has spud two wells in Java, Indonesia. To spud an oil well refers to the process of drilling an initial surface hole.

PT Basic Energi Solusi is the foreign-investment company in Indonesia of Grandway Group Ltd., which is the joint-venture company of Basic Energy Corp. and Petrosolve Sdn. Bhd. of Malaysia (Petrosolve).

“Basic Energi Solusi has informed Basic Energy Corp. that it has spud-in its fourth well and fifth well. Preparations are also under way for the spud-in of its sixth well,” said Basic Energy Corp. in a disclosure to the Philippine Stock Exchange.

PT Basic Energi Solusi further reported that with regard to earlier drilled wells, the first well has reached its target depth albeit having encountered complications and cannot be immediately produced.

PT Basic Energi Solusi earlier acquired the rights to manage 10 wells in the area, with the objective of rehabilitating these wells for possible limited oil production. The first well indicated “good oil saturation at several layers.” The second and third wells are being drilled. “Further studies are to be done to optimize oil recovery prior to the construction of production facilities and going into the production phase,” added Basic Energy.

Source: http://www.businessmirror.com.ph/index.php/en/business/companies/35175-basic-energy-jv-firm-says-spud-wells-in-java