EMOI seeks to sell interest in Aceh?s Block A
Monday, September 12 2005 - 05:22 AM WIB
An Overview Presentation regarding the Offering of Shares of Mobil Block A Limited
by ExxonMobil Oil Indonesia Inc.
Covering Ownership of Interest in Block A PSC, Aceh, Indonesia
This potential transaction will be structured as a sale of all Esso Exploration Holdings Inc. and Mobil Corporation outstanding shares in Mobil Block A Limited. Esso Exploration Holdings Inc. and Mobil Corporation are wholly owned subsidiaries of Exxon Mobil Corporation.
Asset Overview
The Block A PSC, covering 3,687 square kilometers, is located onshore in Aceh Province in northern Sumatra. 45 kilometers east of the giant Arun Gas Field which is operated by ExxonMobil Oil Indonesia, Inc. Mobil Block A Limited acquired a 50% working interest in this block in 1999. ConocoPhillips owns the other 50% and is operator.
Opportunity Highlights:
? Block A PSC represents a ?ready to develop? gas opportunity with world class reserves
? Non producing asset is positioned in a strategic location in Indonesia for development, operations and exploration
? Five significant gas discoveries drilled and pending development
? Large portfolio of prospects and leads
? Established proven and probable reserves, with Degolyer and McNaughton assessments available
? Local demand for gas provides excellent options for early product on
? Plan of Development exists and favorable government terms are offered
License Summary
ExxonMobil?s interest in the license is currently held by Mobil Block A Limited. The history of this interest is as follows:
? The Block A PSC was signed by Asamera on July 6, 1989 with an effective date of September 1, 1991.
? In 1991, Japan Petroleum Exploration Co Ltd. (Japex) obtained a 50% working interest in Bock A for funding a $70 million exploration program.
? Japex subsequently assigned this 50% working interest to their affiliate Aceh Gas & Oil Company Inc (AGO) of Japan.
? Effective January 1. 1999. AGO sold the interest in the block to Mobil Oil Indonesia Inc., which then assigned their Block A interest to Mobil Block A Limited, effective April 1st. 1999.
? The existing PSC expires on August 31, 2011 ? further extensions are possible
The PSC is a standard 1989 Indonesian gas sharing contract, however, good opportunity exists here to improve fiscal terms. All exploration commitments have been fulfilled providing a sizable cost recovery pool to apply to future projects.
Block A Overview
Block A is located onshore in the North Sumatra Basin. Oil was discovered in Block A in the 1920?s and B fields have produced oil from the Pliocene Keutapang sands. These fields are now depleted. Exploration for deeper gas took place in the 1970?s and 1990?s, resulting in five significant discoveries in Block A -Alur Siwah, Alur Rambong, Julu Rayeu, Bata/Peulalu and Kuala Langsa. A Plan of Development has been prepared for three of these (Alur Siwah, Alur Rambong, Julu Rayeu).
The Alur Siwah gas reservoir is a buildup of Miocene Peutu limestone, comprising both reef facies and carbonate banks and shoals. The field has two deeper reservoirs ? the Eocene Tampur dolomite and the dolomitic limestone of the overlying Belumai. Alur Rambong is a gas condensate discovery in the Middle Boang sand. In the Julu Rayeu field oil was originally produced from the shallow sands of the Seurula Fm. ?the field has multiple gas sands (some with oil rims) in the deeper Keutapang Fm.
Of the two remaining discoveries. Kuala Langsa is a very large accumulation of gas in a Peutu reefal limestone, and is mapped aver an area of 78 km2 from high quality seismic data. The reservoir is similar in many ways to the Arun gas field, but the gas contains a high percentage of CO2. The Bata/Peulalu discovery is a smaller Peutu reservoir field divided into a number of fault blocks.
Block A remains highly prospective with the potential for additional large gas discoveries. A portfolio of prospects and leads has been developed. The majority of these target the Peutu limestone, and are analogous to the Alur Siwah field. Several prospects target the Baong sandstone, and are therefore analogies to the Alur Rambong field. Most prospects have reservoir targets at multiple levels.
A large database of 2-D and 3-D seismic data, well logs, well tests and reservoir studies are available to support the reservoir evaluations and development plans.
Commercial Review
? Third party 2P reserve estimates for tow of the five discoveries total 580 BCF
? The Kuala Langsa discovery provides significant additional reserve potential
? Over fifteen identified prospects and leads add large potential for new reserves
? Government backing for Block A production to support local industry creates an optimal climate for attractive commercial development and sales.
? Advantageous development and operating options exist with extensive infrastructure in nearby Arun, South Lhoksukon and Pase Fields, operated by ExxonMobil.
? Demand for gas supply by the local industry is high
Marketing Process
? To enter the Data Room, a Confidentiality Agreement must be signed first by the prospective bidder and then by Mobil Block A Limited. A copy of the signed Confidentiality Agreement will be provided to MIGAS.
? The Data Room will be located in ExxonMobil Oil Indonesia Inc.?s offices in Jakarta. A seismic workstation will be available to view 20 and 3D seismic information.
? Two-day data room appointments can be scheduled by contacting Rob Singh at +61 3 9674 7172 or rsingh@indigopool.com
? Offers will be due Tuesday: November 1, 2005.
If you are interested in scheduling a visit to the Data Room, please contact:
Robert Singh
IndigoPool
Schlumberger Oilfield Australia Pty Ltd
Level 23, HWT Tower
40 City Road
Southgate Victoria 3006
Fax Number: (+61) 3 9674 7255
Phone Number: (+61) 3 9674 7172
Email: rsingh@indigopool.com
Source: IndigoPool