The latter company, which operates the project, spudded its third well on the licence - Geilus-1 - at the start of the month. The well is targeting limestone and sandstone reservoirs of the Miocene, Parigi and Cibulakan formations.
Sound said in consideration for its 20% working interest, Pan Orient had agreed to waive $2.4 million in cash calls. It would also pay $10 million to Sound in cash contingent on revenues from the first discovery, plus $6 million for revenues from the second discovery.
Sound
