Continental commissions FS and POD for its E. Kalimantan gas field

Junior oil and gas firm Continental Energy Corporation on Wednesday announced that it had commissioned consultant from Bandung Institute of Technology to prepare a Feasibility Study, Conceptual Design and Preliminary Plan of Development (POD) for its Makapan Gas Field, located within the Bengara-II Block, East Kalimantan.

The study, said the company, would be completed within 3-4 months? time.

Continental has 60 percent stake in Continental-GeoPetro (Bengara-II) Ltd., the opertor and 100 percent interest holder of Bengara-II Block. GeoPetro Resources Inc. of San Francisco owns 40%.

The company is eyeing to sell its gas to local and regional market including gas-fired electric power generation in East Kalimantan cities of Tarakan, Selor, Malinau and Redeb as well as Tawau, Malaysia. The company also said that a nearby methanol plant requiring up to 65 MMCFD was also a principal market.''

The Makapan Gas Field was originally discovered in 1988 and at the time of its discovery low gas prices precluded its development. The discovery well tested an accumulated flow of more than 19.6 million cubic feet of gas per day plus 600 barrels of 54 degree API condensate from a 33 feet thick sandstone section near 6,000 feet. Several other gas zones indicated on logs were not tested.

The Makapan Field gas is a 'Wet' gas with a high LPG fraction which will most likely be commercial to extract at the wellhead for a third revenue source in addition to the gas and condensate. The Makapan Field lies mostly offshore in very shallow water, less than 10 feet, amidst numerous islands of the Bulungan River delta. (alex)