Gulf Indonesia Resources making progress in Sumatra gas fields

Gulf Indonesia Resources, a 72 percent subsidiary of Gulf Canada Resources, said on Friday it had completed preparations for developing Suban gas field in South Sumatra and would submit preparation documents to the government for review.

?Site preparation for the Suban-8 appraisal well was completed. Suban-8 and Suban-9 are scheduled to be drilled concurrently during the 4th quarter 2002, to determine the extent of Suban gas reserves,? Gulf said in the second quarter 2002 report.

Gulf said the wells had been delayed due to difficulties in mobilizing suitable drilling rigs.

Furthermore, Gulf said the construction of Phase 1 of the Suban field facilities continued and scheduled to commence production in late 2002 to be available to supply gas for the Caltex II sales contract.

Suban gas field is located in Corridor Block production sharing contract in South Sumatra.

Meanwhile Gulf said its 2D seismic survey in the Sakakemang block in South Sumatra, had been completed and that it had moved to the Corridor block to complete a 134km 2D seismic survey.

Also in the South Jambi B block, the Teluk Rendah-2 and Teluk Rendah-4 wells tested gas at stabilized rates of 10 and 12 million cubic feet per day (MMCFD) respectively through a 1/2 inch choke, but the Teluk Rendah-5 had failed to flow gas. The Geger Kalong-3 and Geger Kalong-4 wells had been tested and completed as gas development wells, Gulf said.

The SE Mengoepeh-1 gas discovery in the Tungkal block tested gas at a rate of 8 MMCFD through a 5/8 inch choke, confirming the presence of a small gas resource. Development options for this discovery are presently being pursued, Gulf added. (robert)