Lundin updates Indonesian ops

The following is an excerpt taken from Swedish oil gas firm Lundin Petroleum?s quarterly report ended 31 March 2014 released on Wednesday.

Lundin Petroleum?s assets in Indonesia are located in the Natuna Sea and offshore northeastern Indonesia and onshore south Sumatra. The Indonesian assets consist of approximately 24,750 km? of exploration acreage and one producing field onshore Sumatra.

Production

Production in Mboepd	WI	1 Jan 2014- 31 Mar 2014 3 months	1 Jan 2013- 31 Mar 2013 3 months	1 Jan 2013- 31 Dec 2013 12 months
Singa	25.9%	1.5	1.6	1.6

The production for the reporting period was slightly below forecast due to certain gas treatment issues during March 2014. In early 2014 a revised gas sales agreement was put in place for the Singa field resulting in an increased gas sales price of USD 7.97 per million British Thermal Units (MMbtu) compared to the previous price of USD 5.2 per MMbtu with an effective date of 2 January 2014.

Exploration

Baronang/Cakalang (Natuna Sea)
Exploration drilling on the Balqis and Boni prospect in the Baronang Block (WI 85%) in the Natuna Sea, was completed during the reporting period. Both wells encountered good quality reservoirs at the projected Oligocene level but neither well encountered any hydrocarbons and have been declared as dry holes. Nido Petroleum has exercised its option to increase its stake in the Baronang PSC from 10 percent to 15 percent awaiting SKKMigas approval.

Gurita (Natuna Sea)
The Gobi prospect on the Gurita Block (WI 90%) was originally planned to be drilled immediately after the completion of the Balqis/Boni wells on the Baronang Block but due to late arrival of the Hakuryu 11 drilling rig, there was not sufficient time to complete three wells back-to-back and the drilling of the Gobi prospect has subsequently been moved to the fourth quarter of 2014.

South Sokang (Natuna Sea)
A 3D seismic acquisition programme of 1,000 km? was completed on the South Sokang Block (WI 60%) in 2013. The seismic processing and interpretation is scheduled to be completed in the first half of 2014 and early results indicate potential for both oil and gas prospectivity at Miocene and Oligocene levels.

Cendrawasih VII (Papua)
Lundin Petroleum is undertaking geological and technical studies in respect of the Block (WI 100%) offshore eastern Indonesia. (end of excerpt)