AWE: Analysis of data, oil samples from AAL-4XST1 in progress
Tuesday, January 31 2017 - 04:34 AM WIB
ASX-listed AWE Ltd said analysis of data and oil samples from the AAL-4XST1 appraisal well in Northwest Natuna PSC in the Natuna Sea is ongoing.
?Assessment of the G-Sand resource is ongoing along with laboratory work to assess feasibility of co-mingled production of K-sand and G-sand oil,? AWE said in a statement on Tuesday.
The company said in September that preliminary laboratory testing of oil samples from the AAL-4XST1 appraisal well indicated substantially lower levels of impurities. The company said that better quality crude will enhance overall project economics by reducing capital expenditure, lowering processing costs and improving crude pricing. AWE last year anticipated full assay results before the end of 2016.
The company also said in the Tuesday statement that technical evaluation of FPSO and WHP tenders is complete and the operator of the Northwest Natuna PSC is preparing recommendations for stage 2 commercial tenders. ?Project economics are being updated in light of improved crude quality, improved oil prices through the quarter, and anticipated reduced FPSO, WHP and drilling costs,? AWE said.
The Joint Venture partners in the Northwest Natuna PSC are AWE Limited (via subsidiaries) with 50 percent interest, and Santos Limited (operator) holds the balance.
Editing by Reiner Simanjuntak