Australia?s Matrix to slowdown N. Sumatra offshore exploration works

Australian oil explorer Matrix Oil NL will slow down its exploration activities in Asahan Offshore production sharing contract area after the company renegotiated work programme and budget with state oil and gas company Pertamina.

Matrix said the work programme has been reduced from a two well drilling campaign of US$12 million to a minimal geological and geophysical review of US$0.5 million.

Under the terms of the contract, Matrix and partners can withdraw at the end of the current contract year with no further obligations.

Matrix did not reveal why it sought to reduce spending but recently the company had announced that it was in difficulty to meet short term obligations as oil production from its Langsa oilfield in North Sumatra was below target due to irrepairable leak.

Matrix is the operator and 75 percent working interest holder of Asahan PSC.

Under the terms of the contract, the Company and partners can withdraw at the end of the current contract year with no further obligations.

Meanwhile, the company said detailed analysis continued during the quarter on the results of the recently completed West Kambuna #1 exploration well, located in the Asahan Offshore contract area.

Engineering studies are being formulated to determine techniques to stimulate low permeability gas reservoirs to unlock the large gas accumulation at Kambuna/West

Kambuna, said the company. (alex)