Matrix spuds first N. Sumatra exploration well

Australian listed oil and gas firm Matrix oil announced on Friday the spudding of its first exploration well in the Asahan contract area following the completion of development activities at its Langsa technical assistance contract (TAC) area which Langsa contract area which is located nearby.

Matrix said in its announcement that the Sedco 601 semi-submersible drilling unit, having completed operations on the L2 Langsa development well, had re-located to the site of the exploration well, designated as West Kambuna #1. The wildcat well is located in 120 feet of water some 30km from the coastline of North Sumatra.

The company said it planned to drill to a total depth of 8200ft.

The company said potential reserves in the prospect have been estimated as being 2 to 3 trillion cubic feet of gas plus 150 to 200 million barrels of liquids.

?The Kambuna discovery itself was not delineated at the time because of the lack of a market for gas and condensate in the 1980's. That situation has changed today with the presence nearby of six liquefied natural gas processing facilities (LNG train's) at PT Arun's Lhokseumawe plant, located 175km northwest of the new well location. PT Arun is currently actively seeking gas to provide additional feedstock to those LNG trains,? said Matrix.

The West Kambuna Prospect straddles the boundary between Matrix's 75 percent owned Asahan Offshore contract area and its 90 percent owned adjacent Glagah Kambuna contract area. Matrix is operator of both contract areas.

Matrix recently announced the successful completion of development activities at its Langsa contract area. The L1 well was completed at a stabilised flow rate of 4200 barrels of oil per day (BOPD), while the L2 well was completed at a stabilised rate of 3637 BOPD. The two wells have now been completed for first oil production of 8000-8500 BOPD in late November.(alex)