New Zealand Oil & Gas updates Indonesian ops
Wednesday, October 29 2014 - 01:05 AM WIB
Kisaran PSC, North Sumatra
The operator is preparing a plan of development for submission to the government regulator. Approval by the regulator and the final investment decision are targeted for late 2014/early 2015. The programme will commence with completion of the three suspended exploration/ appraisal wells in addition to three new wells being drilled starting second half of 2015. The completion and new well drilling work will be done concurrently. Initial production is expected Q4 2015.
The operator?s subsurface study work is ongoing as the plan of development is matured. Recovery will be highly dependent on well count, drainage area, geology and well completion practices.
22.5% New Zealand Oil & Gas, 55% Pacific Oil & Gas (Operator) and 22.5% Bukit Energy.
Palmerah Baru PSC, South Sumatra
The permit was awarded to the joint venture in February 2014. The Operator has commenced planning work for a 150 kilometre 2D survey and a 100 square kilometre 3D survey. Acquisition is targeted for the end of 2015 with processing and interpretation extending into 2016. A number of leads have already been identified and the seismic is designed to provide an enhanced view of their prospectivity. An exploration well is targeted for late 2016.
36% New Zealand Oil & Gas, 54% Bukit Energy (Operator), 10% PT SNP Indonesia.
Bohorok PSC, North Sumatra
In 2014 the operator successfully completed acquisition of a 205 kilometre 2D seismic survey.
It is expected that in the current quarter a decision will be made to drill a well in this block in late 2015 targeting primarily a gas-condensate prospect with an unrisked best estimate of prospective resources of gross 6.1 million barrels of oil equivalent* (2.4 million barrels of oil equivalent net to New Zealand Oil & Gas.**) as defined by the recent 2D seismic survey and deterministic analysis. The well location is close to both gas infrastructure and to a robust gas market.
New Zealand Oil & Gas expects to reduce its equity share ahead of drilling.
Cautionary statement: The estimated quantities of petroleum that may be recovered by the application of a future development project relates to the undiscovered accumulation. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
* gas to oil equivalent conversion factor 6000 scf/boe
** Net to New Zealand Oil & Gas is based on 45 per cent share of the estimated contractor?s entitlement under PSC terms
45% New Zealand Oil & Gas, 45% Bukit Energy (Operator), 10% Surya Buana Lestarijaya Bohorok.
MNK Kisaran PSC, North Sumatra
The JV has been advised by the government regulator that it has been granted the production sharing contract but the formal award has not yet taken place. The Indonesian presidential elections and the appointment of a new Energy Minister has delayed this process. We expect award before end 2014.
11.25% New Zealand Oil & Gas, 33.75% Bukit Energy, 55% Pacific Oil & Gas (Operator). (end of excerpt)