Medco Energi announces gas discovery in the Gulf of Mexico

Medco Energi US LLC has recently discovered natural gas with a combined 25' TVT (Total Vertical Thickness) in two primary zones in its East Cameron 318 B-4 well of the Gulf of Mexico in the United States, parent company announced Thursday.

The publicly listed PT Medco Energi Internasional Tbk said in a statement that the well, located approximately 150 miles SSW of Lafayette Louisiana, also encountered three other potential pay sands which will be tested after the two primary zones are produced.

The well is currently in the process of being suspended pending removal of the platform drilling rig (Nabors Super Sundowner XIX). Completion operations will be conducted in early February.

Medco Energi also announced that the US unit also has initiated the production from its newly installed "EC 318 B" facility. Flow from EC 318 B-3 well, which is currently testing at 5 million cubic feet per day, commenced on December 22, 2006.

Further production increases are planned based on additional testing, Medco Energi said.

The EC 318 B facility will also host additional compression capacity for the four company-operated wells at EC 317 A, as well as anticipate production from the EC 318 B 4.

"Once fully operational, it is expected that total net production (from the Gulf of Mexico) to rise by 30% - 40%," Hilmi Panigoro, Medco Energi President Director, said.

According to Medco Energi 2005 Annual Report, the US producing areas produced a total of 0.1 million barrels of oil and 2.4 billion cubic feet of gas in the year. (Robert)