Matrix Oil begins L-2 re-entry drilling in N. Sumatra oil project

Australian listed oil firm Matrix Oil said Friday during the past two weeks, several milestone had been passed as the company moved to first oil production by late November 2001 in Langsa Technical Assistance contract (TAC) area, offshore North Sumatra, where it had 90 percent working interest.

Matrix said during the weeks, the Sedco 601 semi-submersible drilling rig had been successfully re-located to the second well in the re-entry program, L-2. After the setting of anchors, the well-head area was cleaned up, new guidelines mounted on the permanent guide base, the corrosion cap released and retrieved, the tubing hangar spool run and pressure tested and the blow out preventer (BOP) stack run and pressure tested successfully.

The well was then re-entered with an 8 (1/2) inch drill bit and bottom hole assembly to drill-out the existing cement plugs and to clean out the well bore. No problems were experienced and a depth of 5334ft was quickly reached. Pressure testing of the four casing strings set in the hole to this depth has been carried out successfully.

Current operations are focused on drilling out the remaining cement plug before 7" slotted liner is run across the reservoir section to a total depth of 5714ft. A 3 (1/2) inch production tubing assembly will then be set in the hole prior to the conducting of a clean-up and flow test of the well, said Matrix.

The company also said in its report to Australian Stock Exchange the MV 8 "Langsa Venture" Floating Production Storage and Offtake (FPSO) vessel had on location at on Thursday, 25 October and is currently being anchored into position.

The 33,000 tonne dead-weight FPSO vessel, specifically converted for the project, is capable of storing 230,000 barrels of oil, equivalent to approximately three weeks production from the Langsa Fields. (alex)