GFI, partner plan N. Sumatra block drilling H2 2007

Calgary-based oil and gas firm GFI Oil & Gas Corporation said on Wednesday that the company and its partner Houston-based Transworld Exploration Limited would commence drilling at Seruway PSC in northern part of Sumatra in the second half of next year.

The company said a 100 square kilometer 3-D seismic program is underway to delineate the location of the next development well at Gurame Field with completion seen late December 2006.

GFI has 22.5 percent interest in the block with operators Transworld holding the remaining balance.

The Seruway PSC covers approximately 1,115,000 acres. Seven of sixteen wells previously drilled in the Seruway PSC resulted in hydrocarbon discoveries. The block contains five highly attractive greenfields: Gurame, Salem, ONS B-1, NSO-2 and Teripang. Efforts are currently underway to initiate the delineation of the Gurame structure.

Meanwhile, the company also commenced a 450 square kilometer 3-D seismic program to delineate the ultimate size of Kambuna field and to determine a possible location for the initial delineation well at the Glagah oil field.

The seismic program is expected to be completed in early December 2006, the company said.

The next round of drilling of development wells is planned for the second and third quarters of 2007.

Glagah oil field and Kambuna field are part of Glagah Kambuna TAC, Offshore North Sumatra.

GFI, through its subsidiaries, is currently holding a 25 percent interest in Glagah Kambuna TAC, which is operated by UK firm Serica Energy. The first production from the Glagah Kambuna TAC is targeted in early 2008 at initial rates of approximately 50 million cubic feet per day of gas and 5,000 barrels per day of condensate. (alex)