PT Lapindo Brantas Banjar Panji #1 Exploration well

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1 PT Lapindo Brantas Banjar Panji #1 Exploration well Lapindo Medco Santos 50%, Operator 32% 18% ANTARA NEWS 4 September, May, 2006, 10:00 pm, blowout of hot formation water ( mud ) began The East Java Police seized a rig belonging to oil and gas exploration company PT Lapindo Brantas. The seizure was made in order to bring the case to court The number of residents displaced by the mud has increased to an estimated 9,477 people after an emergency pond the firm erected to contain the mud collapsed last week. Mud flows now cover an estimated 200 hectares of land in the Porong area The sinking of the land at a two-kilometer radius from the well is predicted to reach 60 centimeters within a year's time.

2 Approximate chronology Objective was gas prospect in the Kujung limestone, known to be over-pressured in East Java area. Word on the street is that Lapindo had significant open hole (about 3,000 ft?) below casing shoe when they took a kick on 29 May while drilling (into the Kujung?) at 9,297 feet. Massive well kick, flowed hot water to surface completely unloading the well. When well shut-in, underground blow out occurred, possibly breaking down casing shoe. Water surfaced about 200 meters from the rig (the mud volcano ). Flow rate reported to be greater than 300,000 Bbls / day SOP (and BPMIGAS-approved drilling program?) calls for intermediate protective casing at about 8,500 ft. Casing never run. Relief well operations not yet successful. Even in a Non-Op, we need to be technically and operationally vigilant. Don t get into a partnership with an operator you cannot trust.

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15 The very earth is haemorrhaging and it seems no one knows what to do.

16 4 September, 2006 Police seize Lapindo Brantas' rig Surabaya, East Java (ANTARA News) - The East Java Police seized a rig belonging to oil and gas exploration company PT Lapindo Brantas whose unsuccessful drilling activity had caused a catastrophe in Sidoardjo district for the past three months, an official said. "We seized the rig as material evidence as it is the equipment which caused the uncontrollable mud flow," East Java Police spokesman Senior Commissioner Widjaya Purbaya said here Tuesday. The seizure was made in order to bring the case to court, he said adding that nine Lapindo Brantas officials and tens of other people were questioned over the disaster. The number of residents displaced by the mud has increased to an estimated 9,477 people after an emergency pond the firm erected to contain the mud collapsed last week. Mud flows now cover an estimated 190 hectares of land in the Porong area, PT Lapindo Brantas` drilling site. President Susilo Bambang Yudhoyono visited the displaced residents in Porong market last Friday and asked the evacuees to remain patient while the government tried to solve the mudflow problem which began on May 29. State Minister for the Enviroment Rachmat Witoelar said last week his office was working with experts from universities across East Java to extract water from the mud before allowing the water to flow into nearby rivers. Rachmat said the water would be treated first rendering it harmless to the environment. He said PT Lapindo Brantas would bear all the costs to extract the water from the hot toxic mud, to neutralize it and channel it into the sea. (*)