AED updates Indonesian ops
Saturday, October 16 2010 - 01:36 AM WIB
Rombebai PSC, Papua
(AED: 100%)
AED is targeting a prospective resource of seven trillion cubic feet (TCF) with the potential upside of double this amount at the Rombebai target, which is located onshore and close to the coast.
New seismic data and interpretation work has identified the significantly increased potential of the Gesa structure.
The prospect has an excellent path to market with the potential to become a major liquefied natural gas development through the relatively near by BP Tangguh LNG development. Seismic data and interpretation work undertaken during the year has identified the significantly increased prospectivity of the Gesa structure, which is located onshore and close to the coast.
AED has commenced a formal search for a partner to participate in the Gesa-focused exploration drilling program and is also reviewing other financing alternatives. AED has appointed Macquarie Capital Advisers to assist in finding an appropriate farm-in partner for this project.
Future Activity
The first well on the Gesa prospect, Kare-1, is intended to be drilled in 2011 and planning has commenced for a second well or the potential for deepening of the first well.
South Madura PSC, East Java
(AED: 60%)
Through the interpretation of seismic data over the area, several potential targets have been identified.
The Gigir East-1 well was drilled subsequent to the end of the financial year, in July 2010. This well was a commitment well under the terms of the Production Sharing Agreement for South Madura and targeted a small gas prospect.
Gigir East-1 was drilled to the objective targets and wireline logs were run, which provided valuable data for future assessment of the area, but the well did not discover hydrocarbons. The well was plugged and abandoned and the rig was released on 22 August, 2010.
Future Activity
The Joint Venture will now integrate the well results into the regional geology and then assess future drilling targets in the South Madura contract area.
Future exploration activity is likely to concentrate on deeper play types including that was identified by the Kurnia-1 well, by the drilling undertaken in 2007-2008. The Kurnia-1 well is located to the south of the contract area and identified a four-way dip closure in two main structures. (end of excerpt)