Medco?s Exspan to delineate S. Sumatra discovery

Oil and gas company Exspan Nusantara, a wholly owned subsidiary of JSX-listed Medco Energi International said would drill delineation well Jata-3 in South Sumatra Extension block onshore South Sumatra in early December.

Exspan spokesperson Aditya Mandala said the rig is being transported to Jata.

?Jata-3 will be drilled after Jata-2 delineation drilling conducted recently failed to provide satisfactory result,? said Aditya. The drilling is intended to test the extent of discovery in Jata-1 and to increase oil reserves in Matra field.

Jata is located within Matra field, Exspan?s newest oilfield that is in the process of being developed, but Aditya did not say when the field is planned to commence production.

Matra currently has 14 million barrels of oil (MMBO) in certified proved reserves and 380 MMBO in proven plus probable plus possible (3P) reserves. Exspan had drilled Matra-1, 2, 3, and Jata-1 wells in the field. The first three wells are the oil discoveries, while the Jata-1 well is a gas discovery.

Exspan Nusantara planned to build comprehensive production installation in phases for the entire well in the Matra field location. This field will consist of a drilling area, a gathering station, and a pipeline. First production of crude oil will reach 7,400 BOPD. Processed crude oil will be transferred through an 8" pipe with a length of 23 kms to Exspan?s production facilities in Kaji station--Rimau Block. (godang)