Genting discovers oil offshore Natuna

Malaysian firm Genting Berhad announced Monday its subsidiary Genting Oil & Gas Limited (GOGL) had successfully discovered oil through its two offshore exploration wells located offshore Northwest Natuna PSC.

The two wells, named Ande Ande Lumut ? 2X-R (AAL-2X-R) and Ande Ande Lumut ? 3X (AAL-3X), are part of a three-well drilling program in the block. The first two wells were drilled at a total depth of 1,356 meters and 1,290 meters, respectively.

Genting said a major testing program was undertaken on two of sandstone reservoirs in order to flow oil to surface.

The first flow test of an 8-meter sandstone reservoir produced oil at a restricted flow rate of 525 barrels of oil per day (bopd), while the second flow test, which was performed across the upper part of a 19-meter thick oil column located within a 36-meter thick K Sand, produced oil at a restricted flow rate of 1,210 bopd.

?The results of these wells are extremely encouraging and further evaluation of these results will be undertaken to determine the oil reserves size and development potential of the Ande Ande Lumut Oil Discovery,? Genting said in a statement to the Bursa Malaysia.

GOGL?s wholly owned subsidiary Genting Oil Natuna Pte Ltd (GONPL) operates Northwest Natuna PSC with a 100 percent interest.

?GONPL?s progress work has been impressive, having fully completed a 3D seismic survey and drilling of two offshore exploration wells within the first 2 years of the PSC term, despite a 3-year work commitment of 3D seismic and to drill one well. We are very pleased that our Oil & Gas Division?s first three 100%-owned and operated exploration wells in Indonesia were drilled successfully and that all three wells revealed potentially good hydrocarbon reserves. These are very positive developments for our Oil & Gas Division,? the company said.

Genting?s Oil & Gas Division has now completed a three-well offshore exploration drilling programme in the West Natuna area of Indonesia. The first well, named ?Anambas-1X? on the Anambas PSC (located 90km to the south of Northwest Natuna), was announced as a gas and condensate discovery on 25 September 2006. In addition to developing the Ande Ande Lumut oil and the Anambas gas and condensate discoveries, the Division will continue to study the potential of several other prospects within these Northwest Natuna and Anambas PSC Blocks, it said.

GOGL?s wholly owned subsidiary Genting Oil Natuna Pte Ltd (GONPL) operates Northwest Natuna PSC with a 100 percent interest. (Robert)