Land purchase finalized for Prabu-1 in Ranau PSC: Quest Petroleum

By Romel S. Gurky

ASX-listed Quest Petroleum NL reported that a formal land purchase agreement has been signed to acquire the land which is the site for the planned first well to be drilled at the Quest?s Ranau PSC in South Sumatra.

The land purchase agreement was executed by SKK Migas with the owner of land situated at Way Kanan, which is in the south east portion of the Ranau PSC, approximately 140 kilometres north-west of the South Sumatran capital, Lampung and follows the completion of extensive legal due diligence to confirm tenure of the site, it said in a filing.

Quest has received formal confirmation from SKK Migas that the land transfer has accurred.

Importantly, Quest has successfully negotiated to purchase the land outright rather than entering into a land access or use agreement. Title is held in the name of SKK Migas, as required under Indonesian law. The agreement enables Quest to use the land for multiple purposes including seismic surveys, exploration wells, development wells and production infrastructure

The proposed Prabu-1 drill site is located approximately 10km south of the town of Baradatu in the Way Kanan jurisdiction of Lampung Province South Sumatra. It is situated on well drained elevated land adjacent to a paved asphalt road which allows good access for drilling and completion operations. The drill site is situated on the edge of an identified structural high proximate to three significant sub-basins with clear potential for hydrocarbon generation.

The Prabu-1 Prospect target reservoirs for the drilling are in the Baturaja Limestone and Talang Akar Sandstone formations which are the most prolific oil and gas reservoirs in the South Sumatra Basin.

Editing by Dadan Wijaksana