Interra updates Indonesian operation
Friday, November 14 2014 - 10:34 AM WIB
Development and Production Activities
Tanjung Miring Timur TAC, onshore South Sumatra (Interra 100%)
In Q3 2014, gross production was 80,642 barrels of oil, an increase of 30% as compared to the previous quarter of 62,218 barrels of oil. The increase was due to various production optimizations relative to arresting production declines.
Production and development expenditure for the period were US$2,916,567 and US$1,116,366 respectively.
The first of four proposed development wells of the current 2014 drilling programme commenced in Q3 2014. The wells will be drilled back-to-back using an externally contracted rig and is a continuation of the successful drilling programme which began in October 2012. This first well is a direct northern offset to the best well in the field which was completed in April 2013. Construction of surface locations for the remaining three continued.
Implementation and planning continued with respect to increasing production from existing wells primarily through additional perforations into prospective formations that have yet to be properly tested, and more aggressive formation stimulation techniques applied to current productive formations.
In addition, regular surface and borehole enhancements combined with scheduled maintenance and the installation of new lifting and other production equipment continue with the goal of optimizing production from current producing wells. Production and reservoirs studies continue both internally and employing outside specialists and detailed 3D seismic interpretation incorporating data from these studies is ongoing.
Linda Sele TAC, West Papua (Interra 57.21%)
In Q3 2014, gross production was 18,283 barrels of oil, a slight increase as compared to the previous quarter of 18,061 barrels of oil. There were two uplifting of approximately 19,892 barrels of oil during the quarter. Following the completion on 5 August 2014, the Company still effectively holds 57.21% of Linda Sele TAC.
Production and development expenditure for the period were US$675,535 and US$ Nil respectively.
The production increase reflects continued production optimisation through surface and borehole enhancements, scheduled maintenance, and the installation of new lifting and other production equipment. The reservoir study done by an outside contractor which was completed in Q2 2014 has been incorporated into the 3D seismic data interpretation. Prospective drilling locations in both the Linda and Sele fields have been delineated based on this detailed work.
Exploration Activities
Kuala Pambuang PSC, Onshore Central Kalimantan (Interra 49%)
Following the project "kick-off" meeting in Q3 2014, the seismic acquisition contractor began performing line surveying and clearing in preparation for the acquisition of 2D seismic survey. For various reasons technical and otherwise, the original proposed 245 line kilometres has been increased to 304 kilometres. This addition will give better sub-surface data coverage and should aid in picking a possible drilling location. Actual data acquisition is expected to commence mid-Q4 2014.
A "passive seismic" test program over the block was successfully acquired over the prospective area. This will be another "tool" to aid in the evaluation to determine possible hydrocarbon accumulation in the prospective area. This technique in tests by others seems to be capable of indicating the presence of subsurface hydrocarbon reservoirs.(end of excerpt)