GFI updates N. Sumatra block initial seismic results

Calgary ?based oil, gas firm GFI Oil & Gas Corp. announced on Tuesday that initial results from recently taken 450-km 3-D seismic in Glagah-Kambuna TAC offshore North Sumatra have delineated a number of interesting prospects and leads within the block and identified the location for the next two development wells for Kambuna field.

?Initial work under way at the Glagah field has also confirmed a larger oil column than originally indicated by the discovery test well. Additional work is anticipated to be completed in the first quarter of calendar year 2007, to determine the need to drill delineation well,? the company said.

The company also reported that production start from the Kambuna field would be delayed to the second half of year 2008.

GFI has 35 percent interest in the block. UK firm Serica Energy, which holds 65 percent interest, is the operator of the block.

Serica reported in October 2006 that first production from the field was targeted at initial rates of approximately 50 million cubic feet per day of gas and 5,000 barrels per day of condensate.

Elsewhere, GFI also reported that it and Serica Energy, who are partners in nearby Asahan PSC is currently negotiating BPMIGAS on seeking an extension to the exploration period. ?If the Serica is unable to gain an extension to the PSC, the company may lose beneficial interest to its property,? GFI said.

Serica is proposing to develop a marginal field called Tanjung Perling in Asahan PSC , which would be developed as an incremental project to the Kambuna Field. Serica, however, has failed to get PoD approval by December 16, 2006, which is the end of the current exploration period. Government has right to terminate PSC if contractor fails to get PoD approved by the end of exploration period. (alex)