NZOG, partners sign Bohorok block

By Peni Pedriawan

NZOG (New Zealand Oil & Gas Ltd) and its partners have signed a Production Sharing Contract (PSC) for the Bohorok block in northern Sumatra, paving the way for the operator to carry out exploration activities in the block, NZOG announced.

NZOG and its partners were declared as the winning bidder for the PSC in May.

A portfolio of leads and prospects have been identified within the Bohorok block, which covers a total area of 5,022 sq km at the southeast end of the North Sumatra Basin, close to the major city of Medan.

The northern part of the Bohorok block is adjacent to and partly surrounds several oil and gas fields, while the southern and eastern parts have only experienced limited exploration to date.

Under the PSC, the joint venture is committed to an initial 3 year exploration work program including the acquisition of 200 km of 2D seismic and a range of geological studies. Including a US$1 million signature payment, the budget for the 3 year exploration period is approximately US$4 million, of which NZOG?s share is 50 percent.

NZOG will have a 45 percent stake in the Bohorok PSC. Its partners are Bukit Energy Asia Pte Ltd (45 percent) as the operator and PT Surya Buana Lestarijaya (10 percent).

?We are delighted to have been awarded this PSC. It lies in a prolific basin that we have been able to gain a good understanding of through the Joint Study Agreement we signed up to in August 2011,? Andrew Knight, Chief Executive of NZOG, said.

NZOG also has a 22.5 percent stake in the Kisaran permit in central Sumatra, where at least one well is planned for later this year, and has additional Sumatra Joint Study Agreements in progress.

Editing by Roffie Kurniawan