AED updates Indonesian ops
Tuesday, January 25 2011 - 01:46 AM WIB
Rombebai, Papua (AED interest: 100%)
The Rombebai prospect is a world-class multi-Tcf prospective resource where AED is targeting in excess of 7 Tcf. In addition to the massive gas potential within Rombebai, we believe there is also significant prospectively for a major oil find.
Rombebai has an excellent path to market with the potential to become a major liquefied natural gas development similar to the relatively nearby BP Tangguh LNG development.
New seismic data and interpretation work has significantly increased the prospectively of the Gesa structure. Recent studies suggest oil as well as thermal gas potential indicated by oil fluorescence in Gesa 1 and 2, and from oil analysed in hydrocarbon seeps.
AED has become even more positive about the Rombebai project, as our initial assessment had previously suggested that only biogenic gas was likely to be present.
Based on this latest analysis, including the review of well logs from previous drilling campaigns, amplitude versus offset (AVO) anomalies assessed are indicative of the presence of hydrocarbons within these Gesa reservoirs.
Our 2011 geological and geographical program will focus on reprocessing data and performing detailed AVO studies to better quantify the hydrocarbon type and distribution, as well as sampling oil seeps in the region.
As previously advised, the current licence in respect of the Rombebai PSC expires in November 2011 and we are currently seeking from the Government of Indonesia a three year extension to November 2014. We have been encouraged by the support shown by Indonesia?s oil and gas regulator, BPMIGAS. They have recently provided their recommendation to the Government of Indonesia to support our application to grant the extension requested.
On receiving a successful extension to the licence, AED plans to continue with its development plans to drill at Kare-1 in Q4 2011 and recommence farm-out discussions with interested parties. Significant work has been performed in readiness for 2011 work program including:
- Advancement of socialisation and permitting;
- Tendering for long lead items such as rig selection, tubulars, liner hanger and wellhead is underway;
- Completion of initial field surveys and analysis of construction work required;
- Preparation of a mobilisation plan for entering via Gesa River; and
- Commencement of the process for obtaining permits for rig and related services.
South Madura Onshore (AED interest: 60%)
The South Madura Production Sharing Contract (PSC) covers an area of 1,031 kilometres which lies on the Southern side of Madura Island, in the northern Java region of Indonesia. It is located immediately to the north of the Santos-operated Sampang block, containing the Oyong Anggur and Jeruk oil and gas fields, and to the South of the Bukit Tua and Jenggolo oil fields.
The PSC contains a number of near term shallow targets with relatively low drilling costs and potentially holds deep reservoirs with higher resource potential.
Exploration activity is currently being conducted to assess the leads and prospects of this area and is likely to concentrate on deeper play types including that which 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 edited excerpt)