PT BASIC Energi Solusi (PT Basic), a unit of listed Basic Energy Corp., has moved a step closer to production of oil from its wells in Java, Indonesia, the parent firm said in disclosure yesterday.

PT Basic is a subsidiary of Hong Kong-based Grandway Group Ltd., which is a 70-30 joint venture of Basic Energy and Malaysian firm Petrosolve Sdn. Bhd.

Basic Energy said PT Basic “has spud-in its third well” which marks the start of drilling for another well in the area.

“Drilling already started on the third well. Completion is expected by end of June,” Basic Energy President and Chief Executive Officer Oscar L. de Venecia, Jr. said in a text message. “If all goes well and oil is discovered, then the next step is production testing then after that will be actual production.”

PT Basic started drilling the first two wells last year. It reported that the first well had already reached targeted depth, and evaluation “indicates good oil saturation.”

On the other hand, the second well “continues operation to reach target depth.”

“Preparation is ongoing for a new work program to test and produce the above-mentioned wells,” Basic Energy said.

PT Basic — which has the right to manage 10 oil wells in Central Java in Indonesia — was incorporated to provide consultancy, management and supervision services in the management of oil wells.

Petrosolve, a firm registered in Malaysia, is engaged in the business of oil field services including application of chemicals for increased oil production and the development of oil and gas fields and wells.

Basic Energy and subsidiary Southwest Resources, Inc. are involved oil exploration activities. Basic Energy holds minority stakes in service contract (SC) 47 and SC 53, located offshore and onshore Mindoro, respectively, as well as SC 41 in Sulu Sea.

Source:http://www.bworldonline.com/content.php?section=Corporate&title=Indon-oil-project-closer-to-production&id=87039