Matrix?s Langsa crude production down in April-June quarter

Australian oil company Matrix Oil NL said on Wednesday that its oil production from Langsa technical assistance contract (TAC) block offshore North Sumatra had dropped to 131,057 barrels in April-June quarter 2002 from 288,954 barrels in the previous quarter.

Matrix said the L2 well, which in the previous quarter flowed at a rate of 1,400 barrels of oil per day (BPD), currently only flows at a rate of approximately 350 BPD. Production decreased due both to natural reservoir processes and the encroachment of water from the water leg immediately below the hydrocarbon-producing interval, said Matrix.

Matrix said it considered to re-open the L1 well and drilling a replacement well between the existing L1 and L2 locations to increase production from the L Field.

The L1 well was shut down in early December 2001 following the detection of an internal leak of hydraulic fluid in the control line to the sub-sea production system. Completion of comprehensive testing programs at L1 well concluded that the leak could only be repaired by intervention and work-over with a drilling rig, said Matrix.

Matrix estimated the final re-development strategy adopted for the Langsa Offshore TAC would cost between US$18 million to $20 million.

Matrix has 90 percent of working interest and is the operator of the block. (robert)