Cooper Energy to conduct seismic survey in Sumbagsel
Friday, April 27 2012 - 01:50 AM WIB
Australian oil and gas company Cooper Energy said it will conduct a 600 km 2D seismic survey in its Sumbagsel PSC, southern Sumatra, in September this year
The company said in a first quarter report on Friday that a prospect review of the Sumbagsel PSC was undertaken and discussions had commenced with parties interested to farm-in into the Sumbagsel license.
The Sumbagsel Block, which was awarded by the Indonesian government to Cooper Energy last month, has an area of 1,753 km2 and lies in the highly prolific South Sumatra Petroleum Basin. A large number of discovered oil and gas fields are on trend with the block.
The signature bonus for the PSC is US$1 million and the firm commitment for the block in the first 3 years includes G&G studies, acquisition of 1,000 km 2D seismic and the drilling of one exploratory well. The cost of the firm commitment is expected to be around US$5.9 million.
The Company considers this to be the minimum work program and would be looking to exceed the work commitments in order to fully explore this prolific hydrocarbon area.
The geological work by the Company and the Gadjah Mada University of Yogyakarta demonstrates that the block has access to a prolific hydrocarbon source and has proven reservoir formations. A number of leads have been identified for immediate pursuit, which will be the focus of the exploration activities.
The block lies 20 km directly north of the Sukananti Production Area (Cooper Energy 55%, Operator) where the Company recently commenced production at over 100 barrels of oil per day. The award of Sumbagsel is an excellent strategic fit with Sukananti and increases the Company?s footprint in the area.
Editing by Benget Besalicto Tnb.