AWE: Full assay results for AAL-4XST1 appraisal well expected before year-end
Monday, October 31 2016 - 02:35 AM WIB
ASX-listed AWE Limited said on Monday that preliminary laboratory testing of oil samples from the AAL-4XST1 appraisal well in Northwest Natuna PSC in the Natuna Sea, indicated substantially lower levels of impurities.
The company said in a statement that better quality crude will enhance overall project economics by reducing capital expenditure, lowering processing costs and improving crude pricing. ?Full assay results are expected before the end of 2016,? the statement said.
The AAL-4XST1 appraisal well operations were completed in early July, significantly ahead of time and under budget. This represents a positive indicator for future production drilling with the possibility of reduced drilling times and costs, and potentially a lower number of wells.
The AAL-4XST1 appraisal well targeted the G Sand reservoir, which is estimated to contain 289 million barrels gross oil in place with 36 million barrels gross recoverable oil (net 8.4 million barrels 2C Contingent Resources to AWE).
The Northwest Natuna PSC is located in the Natuna Sea, offshore Indonesia, and includes the Ande Ande Lumut (AAL) oil project. The AAL project comprises the K Sand reservoir (101 million barrels gross recoverable oil, net 24.3 million barrels of 2P Reserves and 1.7 million barrels 2C Contingent Resources to AWE) and the underlying G Sand reservoir.
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