Malaysia?s Sumatec in Java marginal field development
Wednesday, May 11 2005 - 01:00 AM WIB
Malaysian firm listed in Bursa Malaysia Sumatec Resources Berhad announced on Tuesday that that its sub-subsidiary, Sumatec Petroleum Development Sdn Bhd has on 10 May 2005 entered into a Heads of Agreement to acquire 65% equity interest of P.T. Petro Java Energy, a company incorporated in Indonesia.
According to Sumatec, Petro Java Energy is negotiating a 20-year Joint Operations Contract for a marginal Oil Field in Eastern Java with P.T. Pertamina.
The company said that the field has a proven reserve of 95 million barrels of oil and a recoverable oil output of 24 million barrels based on a recovery factor of 25%. The field lies in a prolific oil basin with more than one dozen oil fields discovered and exploited.
The development cost for the field is forecasted to be low as the oil is found at only 300-500m below the surface. Oil production is expected to be 5,000 barrels per day. Sumatec did not give more detail about the field. (alex)