AWE plans 2012 drilling in E. Java

Australia-listed oil, gas firm AWE Limited reported on Monday that it planned to drill the Atlas-1 exploration well in Titan PSC offshore East Java in the first half of 2012.

Evaluation of the Atlas prospect has resulted in the identification of a material gas opportunity. Together with Lengo discovery in the adjacent East Muriah PSC, these features are estimated to contain up to 1 Tcf of gross recoverable gas, the company said.

AWE is the operator of Titan PSC with 40 percent interest. The company also has 50 percent interest in East Muriah PSC.

The company has interest in three more adjacent PSCs, namely Bulu PSC ( 42.5 percent), Terumbu PSC ( 100 percent) and North Madura PSC (50 percent).

The company also said it has initiated study on Indonesian shale gas potential. It did not give detail. (alex)