EMP finds more oil in Sumatra blocks

Indonesian listed oil, gas firm PT Energi Mega Persada Tbk (EMP) announced on Tuesday that its ongoing drilling program and workover campaign at its Gelam TAC and Malacca Strait PSC have increased gross oil production by 1,220 barrels oil per day (bpd).

EMP CEO Imam Agustino said that the Gelam TAC in Jambi province produced 290 bpd during the first half of 2010. The company?s 2P reserves are around 3 million barrels.

A recent drilling has increased the proved extent of the 30 meter thick oil reservoir first seen in an offset well and has increased production by 320 bpd. EMP plans to further increase production and to fully develop these reserves by drilling an additional three wells, he said.

Meanwhile, the Malacca Strait PSC has successfully flowed oil from a reservoir previously thought to be non-productive, after successful testing of five old marginal and inactive wells in the Kurau field. The production potential of these 5 wells is estimated to be 900 bpd.

?These discoveries will increase EMP?s performance in the future and strengthen the company?s position as one of the leading private oil and gas producer in Indonesia with net 2P reserves of 567 million barrels of oil equivalent.? said Imam.

With the additional oil production, the company?s net current production rate of 13,170 barrels of oil equivalent per day.

The production activities have been carried out by two subsidiaries namely PT Insan Mitrasani Gelam (IMG) and Kondur Petroleum SA (Kondur). EMP, through its subsidiaries, has 100% and 60.49 % participating interest in Gelam TAC and Malacca Strait, respectively. (godang)