Lundin updates Indonesian ops
Wednesday, November 3 2010 - 08:19 AM WIB
Salawati Island and Basin (Papua)
The net production to Lundin Petroleum from Salawati (Salawati Island WI 14.5%, Salawati Basin WI 25.9%) was 2,000 boepd for the reporting period.
In September 2010, Lundin Petroleum signed a sale and purchase agreement with RH Petrogas (RHP) in relation to the sale of its Salawati interests. The consideration for the sale is US$ 37.1 million plus an additional US$ 3.9 million in the event of certain future field developments. The transaction is subject to certain conditions including RHP shareholder approval and is expected to complete before year end 2010.
Lematang (South Sumatra)
he net production to Lundin Petroleum from the Singa gas field (WI 25.9%) during the reporting period amounted to 300 boepd. Production from the Singa field commenced during the second quarter of 2010. Current gross production from the first production well is 15- 20 million standard cubic feet per day (MMscfd) of sales gas and is restricted by surface facility limitations resulting from higher hydrocarbon liquid production than expected.
Additional liquid removal facilities will be installed and until such time production will remain constrained.
Production is expected to increase to a gross plateau rate of 50 MMscfd following further development drilling. The original Singa gas sales agreement with PT PLN (Persero), an Indonesian state owned electricity company, was amended in February 2010 incorporating an increased gas price and to allow PT PGN (Persero), an Indonesian state owned gas distributor, to buy initial production from the Singa field. The gas sales contract with PT PGN (Persero) was signed in April 2010. The average gas price for both contracts is in excess of USD 5 per million British thermal units (MMbtu).
Rangkas (Java)
A 474 km 2D seismic acquisition programme is currently ongoing on the Rangkas licence (WI 51%).
Baronang/Cakalang (Natuna Sea)
A 975 km2 3D seismic acquisition programme on the Baronang and Cakalang licences (WI 100%) was completed in April 2010 and interpretation is ongoing. (end of excerpt)