Medco finds new oil, gas reserves in Libya, S. Sumatra
Monday, September 29 2014 - 12:52 AM WIB
The company said in a statement Sunday that exploration activity at its Area 47 block in Libya had yielded the discovery at the O2 well in the block. The O2 well was spudded on May 23 and drilled to a total depth of 10,780 feet.
?Initial tests demonstrated the well [is capable of producing] 3,300 barrels of oil per day and 140,000 standard cubic feet per day of gas,? the statement said.
Medco said the discovery of the O2 well and P2 wells in July showed the prolific hydrocarbon (potential) of the Ghadames Basin in Area 47, where large oil and gas reserves was discovered with a 90 percent exploration success rate.
Medco through its subsidiary Medco International Venture Ltd holds a 24.5 percent stake in a joint venture company called Nafusah Oil Operation, which is exploring the Area 47 in Libya. The Libya National Oil Corporation controls 51 percent of Nafusah, and the remainder is held by the Libya Investment Authority.
Medco said previous studies showed the total estimated recoverable oil and gas in Area 47 was 250 million barrels of oil equivalent.
Meanwhile, Medco also said that its subsidiary PT Medco E&P Indonesia has discovered gas reserves at its Hijau-2 well in South Sumatra PSC.
The Hijau-2 delineation well was drilled to a vertical depth of 5,695 ft. (1,736 meters), proving a 35-meter gas column in the Baturaja limestone formation. A drill stem test confirmed a gas flowrate of 5.05 million standard cubic feet per day (MMSCFD) through a 24/64 inch choke, the statement said.
Medco describes the well as a ?prospect opener? in the still prolific South Sumatra basin, where the company has substantial acreage. ?This discovery is assessed as commercially viable, South Sumatera being an area with existing infrastructure and high gas demand. It will increase the Company?s gas production for the domestic market,? it said.
Medco operates nine oil and gas blocks in Indonesia. It also operates overseas, including in Libya, Oman, Papua New Guinea, Tunisia, Yemen and the Gulf of Mexico off the US coast. The Medco Group also owns several gas-fired and coal-fired power plants that supply electricity to state utility company PLN.
Lukman Mahfoedz, President Director and CEO Medco Energi, stated: ?These successes prove our company?s strong capability in exploration with more and more discoveries of new oil and gas resources in Indonesia as well as overseas. This achievement will contribute to Medco Energi?s growth by adding oil and gas reserves and increasing the company?s reserve life index.?
Editing by Reiner Simanjuntak