Mirach reactivates 15 wells

By Romel S. Gurky

SGX-listed Mirach Energy Ltd said that it has reactivated 15 oil wells in the first-half ending June at the Kampung Minyak oil field in South Sumatra, out of the target to reopen 29 old wells this year, in a bid to stabilize operations and improve operational reliability.

?The KM Field operations has been stabilzsed and management will now focus on improving operational reliability and productivity. The Group plans to reopen up to 29 old wells in 2015,? it said in a statement Thursday.

Mirach said some of the old wells will only involve simple reactivation work, while others may require workover.

The company said it is working with a Chinese oil services provider on success-based fee arrangements for the reactivation of some wells.

Mirach said it will commence hydro-injecting pilot program trials to optimize production in the third quarter of this year.

Elsewhere, the company said total cash used for exploration, drilling and testing activities at Kampung Minyak Oil Field was US$1.25 million in the second quarter of2015. This was higher than the earlier projected use of funds of US$0.50 million in the 1Q2015 results announcement due to the prepayment to suppliers for the reopening of old wells.

Mirach Energy is licensed to produce oil at the Kampung Minyak Field in South Sumatra, Indonesia, 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 Reiner Simanjuntak