The total projected expenditures proposed by CGB2 comprises of the drilling of two wells in 2011 that consists of one appraisal well and one exploratory and/or additional appraisal well at a combined budget of $53.8m.
The total budget also includes an amount of $30.8m for 2D and 3D seismic acquisition, processing, and interpretation expenditures.
However, the amount proposed for 2011 does include an increase in expected 2010 seismic acquisition costs to cover overruns expected as a result of delays in 2010 field acquisition efforts caused by surface damage claim issues, according to the company.
The remainder of the proposed budget provides for technical studies intended to justify a plan of development and for administrative expenses.
The budget is subject to the revision of and the approval of Indonesian oil and gas regulator BPMIGAS.
