Dana Petroleum to farm out E. Java Pangkah PSC

UK-based independent oil firm Dana Petroleum PLC announced Tuesday that it had reached a deal with Amerada Hess to farm out its interest in the Pangkah PSC offshore East Java, in exchange for an interest in Amerada?s producing field in UK.

?Following the successful completion of the Pangkah appraisal campaign, Dana has decided to exit Indonesia through an asset exchange of its 12% interest in the Pangkah PSC for a 28% interest in the producing Hudson field in the North Sea,? Dana said in its Interim Report.

The recently completed Ujung Pangkah North and Ujung Pangkah West appraisal wells both encountered gas overlying oil in the Kujung limestone formation, demonstrating the presence of a westerly extension to the previously proven area of the Ujung Pangkah field.

Dana also said the third well was added to the Pangkah drilling programme to test the western extent of the Sidayu oil prospect.

?This well found the target Kujung reservoir deeper than prognosed. The well found oil, but encountered it in a thin, sub-commercial column and the well was consequently plugged and abandoned without testing,? Dana added.

Dana Petroleum holds a 12 percent of working interest in the Pangkah PSC, while operator Amerada Hess and ConocoPhillips hold 66 percent and 22 percent respectively. (robert)