New Zealand Oil & Gas updates Indonesian ops

The following is an excerpt taken from Australian oil, gas firm New Zealand Oil & Gas (NZOG) quarterly report released on Wednesday.

MNK Kisaran PSC, North Sumatra
The partners in the conventional Kisaran PSC have been awarded the right to explore for ?unconventional? oil and gas resources in the same sub-basin. The equity shares in the unconventional resource differ from shares in the conventional PSC.

Unconventional resources are those where substantial volumes of oil and gas are believed to be present, but the rate of production is limited by low permeability in the rocks. Commercial development of some of these resources has been made possible by new extraction technology, particularly in North America.

The consortium will study the effective application of these technologies in onshore Sumatra over the next three years.

The first firm, three-year exploration work commitment includes geological and geophysical studies in each year and drilling a vertical exploration well in year three.MNK Kisaran, also known as Baruman, is one of the first PSCs for unconventional oil and gas resources issued in Indonesia, and the first time New Zealand Oil & Gas has had exposure to prospective oil and gas resources that qualify for concessional Indonesia government terms. Without those concessions the resources could not be developed commercially.

Central Sumatra is one of the major oil producing basins in South East Asia.

New Zealand Oil & Gas 11.25%, Bukit Energy 33.75%, Pacific Oil & Gas 55% (Operator)

Kisaran PSC, Centra Sumatra
Two wells in the PSC were successfully drilled in 2013. A Plan of Development is in the final stages of drafting and will be submitted to the government regulator before year end. The associated final investment decision is expected then.

New Zealand Oil & Gas 22.5%, Pacific Oil & Gas 55% (Operator), Bukit Energy 22.5%

Palmerah Baru PSC, South Sumatra
Early work is underway to prepare for exploration in this Production Sharing Contract in onshore south Sumatra. The permit commits the partners to 2D and 3D seismic surveys and at least one well before 2017.

New Zealand Oil & Gas 36%, Bukit Energy Palmerah Baru 54% (Operator), PT SNP Indonesia 10%

Bohorok PSC, North Sumatra
Acquisition of a 2D seismic survey of approximately 260 kilometres was three quarters complete at publication date.

New Zealand Oil & Gas 45%, Bukit Energy 45% (Operator), Surya Buana Lestarijaya Bohorok 10%. (end of excerpt)