New Zealand Oil & Gas updates Indonesian ops
Friday, July 26 2013 - 01:31 AM WIB
Kisaran PSC (New Zealand Oil & Gas 22.5%)
The Parit Minyak-2 (PM-2) well in this northern Central Sumatra Basin PSC reached a total depth of 9225 feet (2812m) on 8 April.
During drilling several oil shows were noted within sandstones in the Pematang formation in a gross interval of 7500-8900 feet. The base of the oil column was not reached at the cessation of drilling.
Cased hole drill stem tests (DSTs) were conducted over four intervals, each containing multiple sandstones. From the interval 8136-8330 feet the well flowed 37o API oil at rates in the range of 200-400 BOPD (32/64? choke, 80-100 psi flowing well head pressure) with no water.
A hydraulic fracture program has been prepared to stimulate one of the DST intervals in order to increase the productivity of the reservoir. This is expected to begin in early August. The drilling rig has been moved to the site of the next Kisaran exploration well, Parit Minyak-3, where site preparation is nearly complete. PM-3 is expected to spud around publication date.
Weekly progress announcements will be made during drilling operations.
Oil has been recovered in the Parit Minyak-2 (PM-2) exploration well in onshore Sumatra. It?s the first time New Zealand Oil & Gas has been involved in recovering oil to the surface outside New Zealand. But it will be months before we know if the find is commercially viable.
The PM-2 well is the second in the Parit Minyak structure, located about a kilometre and a half north of Parit Minyak-1. When PM-1 was drilled about eight years ago there were non-commercial oil shows in upper and middle Pematang Formation reservoirs. PM-2 spudded in February with the primary objective of testing middle to lower Pematang reservoirs. It reached a total depth of 9225 feet.
It will take a few months to know if PM-2 has established sufficient basis for a commercial development.
During drill stem testing it flowed 37o API oil at rates ranging from 200 - 400 barrels per day. This doesn?t mean 400 barrels were recovered in a day - the flow rates are measured in periods of minutes to hours, and the ?per day? measurement is an estimate of the rate that would flow if recovery continued for a full day.
The oil recovered from PM-2 is in ?tight? and/or disconnected rock formations. Therefore the well will be hydraulically stimulated in hopes of increasing flow rates. Fractures induced by stimulation typically increase flow rates by a factor of 2-4. Typically after the stimulation the flow rate and pressure quickly increases and as the well flows the pressure tapers off and stabilises. The data collected during this initial flow period allows for an estimate of the size of the oil reservoir. It will likely take several months of flow performance before preliminary estimates are made.
In the meantime the rig has been moved to Parit Minyak-3 (PM-3) located about 1.4 kilometers southwest of PM-1.
Geoscientists from New Zealand Oil & Gas believe the discovery at PM-2 demonstrates the existence of an active petroleum system in the region. The PM-3 well is a test of different, shallower reservoirs that are potentially charged by the same active petroleum system. If oil is recovered in the primary targets of PM-3 it is expected to come from high quality, aerially extensive reservoirs, meaning it would flow to the surface relatively easily. But until it?s drilled no one can be sure.
The operator of the project, our partner Pacific Oil & Gas, has won recognition from the Indonesian regulator for its performance in Kisaran. It was presented with the highest rating ?gold? award for its technical performance and PSC compliance.
Bohorok PSC (New Zealand Oil & Gas 45%)
Planning is in progress for a 2D seismic survey to be undertaken in early 2014. (end of excerpt)