Mirach starts well operations at Kampung Minyak

SGX-listed Mirach Energy Limited announced on Wednesday that its subsidiary PT Kampung Minyak Energy, has commenced well operations at the Kampung Minyak oilfield onshore South Sumatra.

The initial phase at the site will include about 20 days of well operations on six previously producing wells, KM53, KM518, KM158, KM025, KM330 and KM505, with well depths ranging from 89 metres to 496 metres. The wells were shut off in 2010 and 2011 and are currently not producing.

Heavy facilities for well operations, including a 250hp service unit, one 25-metric-ton-carried crane, a bulldozer for maintenance of infrastructure and well-sites, and a tank truck, have been deployed to the site, the company said.

The work team comprising staff from both Mirach Energy and Daqing Enterprise International took over field operations from the state-owned oil and gas firm Pertamina in July 2011.

The well operations are expected to improve borehole conditions and oil production. The company will make further announcements to update shareholders on the operations of the oilfield.

Mirach has been granted right by Petamina to operate the Kampung Minyak field, an area covering about 45 square kilometres. Based on data provided by Pertamina, Kampung Minyak is a mature field and contains about 65 million barrels of Original Oil in Place

Mirach has formally appointed Daqing Enterprise International to provide integrated oil field production and engineering services at Kampung Minyak field. Daqing will implement the EOR programme designed to raise production, including EOR water flooding and injections techniques.

Mirach and Daqing target to achieve the estimated production rates of 400, 700 and 1,000 BOPD by the end of the first, second, and third year respectively. (romel)