Fortune Oil & Gas, Inc. announces production results
Wednesday, January 24 2001 - 03:00 PM WIB
Canadian oil company Fortune Oil & Gas Inc. yesterday announced oil production at its Camar Field in Bawean PSC in East Java has commenced, according to the announcement released by the company..
The company said production start-up commenced on Jan. 16, 2001. During the past seven days of partial production the Company has produced 15,504 barrels of crude oil.
The Camar oilfield was developed with two production platforms, CPP on the south lobe and WPP on the north lobe, connected by pipeline. Six wells are tied into the platforms and production is stored in the Camar Ayu, a permanently-moored storage and accommodation tanker with a capacity of 200,000 barrels. Production is sold to Pertamina at the Indonesian Crude Price ("ICP"), which approximates West Texas Intermediate prices
As of Jan. 22, 2001, the Company has reopened four of the existing wells located at the Camar Field. Four additional wells were expected to be reopened during the first week of production activity, however due to the inclement weather conditions and therefore safety concerns related to moving heavy equipment and personnel to the WPP platform, Fortune Management decided to delay the reopening of the remaining wells until a more suitable time. Subject to favorable weather conditions, the Company fully expects to reopen the remaining wells during the next seven days.
David Nunn, president of Fortune expressed, ``great delight at the early production results and fully expects the Camar Field to easily meet the production targets that Fortune Management expected for Field production once all wells are operating and producing.''
No major difficulties or non-weather related delays were encountered during start-up of the operations and during the first week of production. Nunn stated, ``This is primarily due to the diligent and carefully prepared start-up procedures established by the Company during the pre-production period.'' He went on to say, ``Management decided early in the planning stages that a full maintenance, inspection and upgrade program would be completed during the pre-production period, enabling the Company to substantially reduce the risk of possible equipment maintenance delays during production. This would dramatically increase the possibility of uninterrupted production.'' (alex)