ACL ups interest in South Block A PSC
Tuesday, November 29 2016 - 04:38 AM WIB
Canadian firm ACL International Ltd. announced Monday it has increased its interest in the South Block A PSC, Aceh Province.
ACL, through its 75 percent holding in subsidiary Renco Elang Energy Pte. Ltd. (REE), in conjunction with its joint venture partner Lion Energy Ltd. (Lion) have exercised their rights to default PT Prosys Oil & Gas International (POGI) for non-payment of cash calls.
ACL said in a statement that POGI?s 14 percent interest will be acquired pro-rata by Lion and REE, as per the Joint Operating Agreement (JOA). As a result of the default and increase in interest, REE will hold 59.3 percent working interest (previously 51%) and Lion will hold 40.7 percent (previously 35%).
While POGI will not benefit from any potential success of the upcoming Amanah Timur-1 well under the JOA, POGI remains responsible for any incurred/outstanding PSC liabilities including its share of unpaid cash calls, the statement said.
Elsewhere, ACL said site preparations have been underway and REE expects to spud the Amanah Timur-1 well in December 2016.
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. 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 on-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 kilometres of the location.
Editing by Reiner Simanjuntak