Mirach Energy acquires stake at Wiriagar Block

Singapore Exchange-listed firm Mirach Energy announced on Monday that that its wholly- owned subsidiary has signed an Operations Cooperation Agreement (KSO) with state oil and gas company PT Pertamina EP, for the rights to operate on a contract area known as the Wiriagar Block onshore West Papua.

This KSO Agreement is signed via a newly established Indonesian company, Petroenergy Utama Wiriagar. Mirach group and its Indonesian partner, PT Remaja Bangun Kencana each hold a 50% stake in Petroenergy.

The KSO holds fifteen years duration, whereby Petroenergy will provide all the financial and technical skills to carry out petroleum production activities and subsequently enhance production rate activities.

Under the KSO, Petroenergy has budgeted approximately US$2.2 million in working capital commitment for the first year. The initial period of operations in the area will involve the reopening of old wells that had been shut off and other related well works.

Wiriagar is at located at a distance of 4.6 square kilometers to the Kamundan Block, in which Mirach has also a KSO with Pertamina.

Oil was discovered in 1981 with 11.86 MMBL oil-in-place and proven oil reserves of 3.86 MMBL. The field had three production wells drilled with an initial daily production of 3,000 barrels, the company said.

Before Pertamina closed the field, production from the three wells were 150 barrels per day.

Wiriagar covers 5.15 square kilometers and is situated at the onshore area of the Bintuni Basin, in the bird?s head area of Papua. It is surrounded by BP?s concession area at Tangguh Wiriagar and is at a distance of about 6 kilometres to China National Oil and Gas Exploration and Development Corporation?s (CNODC) oil and gas field, the company said. (alex).