Matrix still in talks to raise fund for N. Sumatra oilfields

Australian oil company Matrix Oil NL said on Friday negotiations were continuing with interested parties to raise US$18-20 million in capital required to carry out three well remedial program of Langsa oil fields offshore North Sumatra.

The company said it was in talks with all major creditors about debt repayment out of future oil production, in the event that the company is able to raise all the funds required to complete the requisite work at the Langsa technical assistance contract (TAC) fields and to resume oil production.

Matrix said it was close to finalizing terms to ensure that the floating production storage and offloading (FPSO) tanker remains on station at the Langsa TAC area in the Strait of Malacca. This is also conditional upon the raising of the finance to complete the work program of the three well as planned.

?There is currently approximately 140,000 barrels of oil in the FPSO, with the L2 well producing approximately 450 barrels of oil per day. It is planned to undertake the fourth lifting of oil from the Langsa ?L? field in mid September, bringing total production from the field since November 2002 to around 560,000 barrels of oil,? said the company.

L2 well, which in this year?s first quarter flowed at a rate of 1,400 BPD, currently only flows at a rate of approximately 450 BPD due both to natural reservoir processes and the encroachment of water from the water leg immediately below the hydrocarbon-producing interval.

Another well, L1, had been shut down in early December 2001 following a detection of internal leak of hydraulic fluid in the control line to the sub-sea production system. (Robert/leo)