MEO reports Indonesian operations
Thursday, January 31 2013 - 04:52 AM WIB
Seruway PSC, North Sumatra (MEO 100%, Operator)
The Seruway PSC was acquired in mid-2011 and is in close proximity to a strong domestic gas market and existing LNG infrastructure with spare capacity.
During the quarter Gurame SE-1X commenced drilling on 23rd September. The well reached a total depth (TD) of 3,145mMDRT in a sidetracked hole within the primary target Belumai sands. Significant mud losses at this level precluded drilling ahead.
Production testing of the Baong sands failed to flow gas to surface and the well was subsequently plugged and abandoned with the rig released on 22nd December.
Notwithstanding the significant investment in drilling on an existing discovery, drilling proved to be technically challenging and the Baong reservoirs found to have low productivity. The deeper Belumai sands were not fully penetrated and could not be production tested due to operational constraints. It is considered unlikely that the Gurame resource can be advanced to commercial development within the remaining tenure of the PSC.
Work continued on the Ibu Horst 3D seismic to develop an inventory of drillable prospects for consideration as potential 2013 drilling candidates. A farmout/partial sale process is scheduled to commence in early March.
East Java, South Madura PSC (MEO 90%, Operator)
During the quarter, discussions with regulatory authorities continued in relation to an application seeking compensation for lost time in the permit.
Further investment in the PSC by MEO is predicated upon securing tenure beyond the current expiry of the permit in October 2013. (end of excerpt)