ACL to drill Amanah Timur well
Wednesday, October 12 2016 - 02:19 AM WIB
Canadian firm ACL International Ltd. announced Tuesday plan for an upcoming spud of the Amanah Timur-1 (AMT) well within its South Block A PSC located in the prolific North Sumatra Basin.
The Block is operated by ACL?s subsidiary Renco Elang Energy Pte Ltd. (51% interest). Lion Energy, a company listed on the Australian Stock Exchange has a 35 percent interest and PT Prosys Oil & Gas International a 14 percent interest.
ACL said in a statement that the well-defined prospect is situated within a highly productive hydrocarbon trend and is covered by recently acquired seismic, hence the good probability of success. The target Keutapang play has delivered over 600 mmbbl oil, 2.2 tcf gas and 50 mmbbl condensate in the basin to date.
It added the shallow objective (with a planned total depth of approximately 550 meters) has already proven oil productive in pre-WWII wells and is close to oil and gas infrastructure with potential to deliver near term cash flow.
The well is expected to cost US$1.2 million (representing approximately one-third of 2014 cost estimate) and includes completion and planned cased hole testing.
The 300 mmbbl Rantau Oil field is located approximately 30 km to the southeast and the 400 mmsfcgd open access gas pipeline serving Medan runs within several kilometers of the location.
The South Block A PSC is centrally located in the prolific North Sumatra Basin and contains large structures with proven gas and oil potential. It is divided into two separate blocks; the western block is known as Area 1 and covers an area of 1,138 km2, while the smaller Area 2 block to the east, extends over the coastal boundary with an offshore portion and covers an area of 442 km2. The region has a strong gas market with solid demand, high prices and a new open access pipeline to Medan extends through the PSC acreage.
The PSC is currently in year 6 of its exploration period with one commitment well to be drilled by year-end. Drilling of this commitment well will allow for extension of the exploration term of the block by up to 4 years. The joint venture has identified a number of follow up appraisal locations in the event of success and will plan an accelerated development.
In addition, the South Block A PSC has a suite of attractive additional opportunities including the world class Jerneh gas condensate prospect (very large undrilled prospect in the North Sumatra Basin) which the joint venture plans to target in 2017.
Editing by Reiner Simanjuntak