Matrix to re-enter N. Sumatra well after drilling study

Perth based oil and gas firm Matrix Oil NL today announced it planned to re-enter its West Kambuna 1 well in Asahan production sharing contract (PSC) area offshore North Sumatra in the middle of this year, after independent studies had estimated gas in-place figures ranging from 0.6 to 4.5 trillion cubic feet and condensate ranging from 40 to 320 million barrels in the Kambuna/West Kambuna accumulation.

In late November 2001, Matrix suspended West Kambuna 1 well. The company reported intersecting gas-bearing sandstones in the primary target Belumai formation, which were cased off and drill-stem tested over the interval between 7467 feet and 7525 feet.

"Given the shows and porosities recorded and the electric log analyze that indicated gas pay, it was unusual that the test failed to flow hydrocarbons,? Matrix said in its report to the Australian Stock Exchange.

The West Kambuna well is located 3.5km south west of Kambuna 1 discovery that has been tested at 14 million cubic feet of gas plus 990 barrels of condensate per day.

Matrix said it had suspended the West Kambuna 1 well in such a manner that can easily be re-entered.

Matrix, the operator of Asahan PSC, holds 75 percent working interest in the block. (alex/robert)