Mirach Energy?s activities slowed down by rainfalls, oil price

By Romel S. Gurky

SGX-listed Mirach Energy said due to heavy rainfalls as well as the exceptionally low oil prices in the first quarter of 2016 (Q1 2016), there was a slowdown in the reopening of old wells in Kampung Minyak oil field (KM) in South Sumatra

There were seven old wells reopened and the focus remain on ensuring improving well servicing, with no plans to drill new wells given the current oil price environment, the firm said in its Q1 2016 report.

The Pilot Water Flood program is into its final phase and set for commissioning by later half of Q2 2016, which shall then be put on an evaluation period for 6 months regarding its production output and its capacities.

Meanwhile, the firm said it engaged in consolidating the KM Field operations so as to contain its operational costs and to enhance its production capacity. This is also in preparation for the opportune time for an effective and efficient ?take-off? when oil prices resume to an acceptable level.

Mirach Energy is licensed to produce oil at the Kampung Minyak Field in South Sumatra, for 15 years under a KSO (Joint Operation Agreement) with Indonesia?s state-owned oil and gas firm PT Pertamina. The field covers 45 square kilometers with 65 million barrels of OOIP mainly located in the reservoir formation between 200-500 meters. The company is partnering with one of the most successful EOR firms in Asia, Daqing Enterprise International, a subsidiary of PetroChina Daqing Oilfield Company Limited, to rejuvenate the field and enhance production rates.

Editing by Johannes Simbolon