BPMIGAS approves Quest?s Kayumanis drilling plan
Tuesday, October 23 2012 - 02:37 AM WIB
ASX-listed Quest Petroleum NL said that the upstream authority BPMIGAS had approved the AFE for Kayumanis-1 well in the highly prospective Komering basin, together with Quest?s 2012 work plan and budget.
These approvals represent a major milestonefor the company and enable negotiations for the drilling contract to be finalised and executed within the next month, the company said in a press statement on Tuesday.
All third party service contracts are being negotiated and materials and personnel are being mobilized in preparation to commence drilling.
The Kayumanis-1 prospect is one of 16 leads identified in the Ranau production sharing contract (PSC) with combined potential of up to 6Tcf gas and/or 300 mmbbl oil.
This prospect is located approximately 10 km south of the town of Baradatu in the Way Kanan jurisdiction of Lampung province, South Sumatra.
The first drill location is situated on the edge of an identified structural high proximate to three significant subbasins with clear potential for hydrocarbon generation.
The target reservoirs are in the Baturaja limestone and Talang Akar Sandstone formations which are the most prolific oil and gas reservoirs in the South Sumatra basin.
The drill site is on well drained, elevated land adjacent to a paved asphalt road which will facilitate the commencement of drilling and completion.
The Kayumanis-1 prospect potential is estimated at up to 59mmbbl or 340Bcf gas. Operators in the surrounding PSC have reported initial flow rates of up to 3,000 BOPD from the same formations as those hosting the Kayumanis‐1 Prospect.
The Company can now also advise that the spud date target is anticipated in December subject to rig mobilization and land access agreements.
Based on the results of the Kayumanis1 Well, two further wells are planned in the initial drilling program. Work is underway on refining the physical drill locations and further details on these will be released closer to spud date.
Quest Petroleum Managing Director Anthony Milewski stated: ?The BPMIGAS approvals are a significant milestone for the company and the commencement of drilling is now visible at this highly prospective location.?
Editing by Benget Besalicto Tnb.