KrisEnergy to farm out Aceh exploration block
Thursday, April 10 2014 - 03:55 AM WIB
SGX-listed upstream company Kris Energy plans to farm out part of its interest in East Seruway PSC offshore Aceh.
The company in its annual report released on Tuesday did not give further details, but said that prior to the drill, it might seek to mitigate risk and defray costs by farming out to third parties a portion of the exploration drilling costs.
The company has 100 percent interest in the block, which is located in water depth of 20-60 meters.
Six exploration wells have been drilled within the current boundaries of the East Seruway PSC, of which one encountered gas and condensate, one tested gas and four failed to encounter hydrocarbons.
Following a 2,142 km 2D seismic acquisition program in 2010, work was suspended in the area pending the resolution of administrative issues between the Indonesian central government and the provincial authorities in Aceh province.
Work resumed on the contract area in late 2012 and 948 km 2D seismic data was acquired in February 2013.
Based on a review of geological and geophysical data, the company has identified and mapped 11 gas leads in the East Seruway PSC and plans to drill one exploration well in the second half 2014.
Editing by Reiner Simanjuntak