Korea-US JV farms-in Indonesia exploration block

Asia-Pacific-focused Independent oil, gas firm Mitra Energy Limited (Mitra) announced last week that it has reached agreement to sell 33 percent shares of Titan Resources (Natuna) Indonesia Limited (TRNI L), a Bermuda registered company and wholly owned subsidiary of Mitra, to GS Caltex Corporation.

On the completion of the purchase, GS Caltex will become a shareholder in TRNIL, the company said. GS Caltex is a JV between South Korean firm GS Holdings and US giant Chevron Corp.

According to its website, the Mitra currently owns 100 percent shares of TRNIL, which in turns owns 90 percent working interest in offshore NE Natuna PSC. The remaining 10% interest in the PSC is held by an Indonesian company, PT. Binatek Reka Natuna

The NE Natuna PSC covers an area of 1,470 square kilometres in the Natuna Sea in water depths ranging from 120 metres to more than 850 metres. The PSC lies immediately south of the international boundary with Vietnam.

The NE Natuna PSC was signed on 15th May 1997. A total of 2,319 line kilometres of 2D seismic data were acquired in 1996/98 and one exploration well, Durian Besar-1, was drilled in 1998. The well did not encounter any hydrocarbons in its primary objective, the Terumbu Carbonate, and was TD'd before drilling to the secondary objective.

Preliminary evaluation by Mitra has indicated presence of two types of hydrocarbon play in the block. Mitra's auditor, RISC (2010), assigns a best estimate (P50) Prospective Resource of 345 mmboe based on seven prospects and leads identified in the block.

In order to evaluate the hydrocarbon potential of NE Natuna, the partnership committed to acquire a minimum of 600 square kilometres of 3D seismic in 2010 prior to drilling one exploration well which is planned in 2012. (romel)