ENRG reports well control issues at Banjarpanji-1stabilizing, loses minimized

PT Energi Mega Persada reports that at 5am on May 29, 2006 the company observed steam, water and a minor amount of gas bubbling to the surface adjacent to its Banjarpanji-1 exploration well at Sidoarjo, East Java, Indonesia. The company reports no fatalities and no damage to drilling equipment.Mr. Chris Newton, President Director of ENRG said that “the Banjarpanji-1 well was drilling at a depth of 9,297 feet and while implementing standard well control procedures, the company observed steam, water and a minor amount of gas bubbling to the surface some 200 meters from the drilling location. The associated H2S smell from the surface emission necessitated an evacuation of people in the immediate vicinity.”

While the drilling activities are taking place in a populated area, the water and steam bubbles have not lead to any fatalities nor are their any reports of third party property damage. The operator of the Brantas PSC and subsidiary of ENRG, Lapindo Brantas, Inc. has also taken out insurance covering well control in its drilling activities and any related evacuation costs.

The company is working with local officials and has the situation under control and reports that the intensity of the emissions has decreased after intervention through pumping drilling mud into the well. At this moment, Lapindo Brantas, Inc. is continuing the drilling intervention to ensure the safety of the environment and the community surrounding the location.

ENRG does not expect to lose the hole and while we are currently focusing on the current situation, we expect to complete the well in due course

Find this page online at: http://www.scandoil.com/moxie/news/fd_news_world/enrg-reports-well-control.shtml

Posted Wednesday, May 31, 2006

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