Octanex eyes South Block A in North Sumatra

By Romel S. Gurky

ASX-listed Octanex N.L is seeking to merge with Peak Oil & Gas Limited, also an Australian firm, in order to gain ownership in the latter?s assets, including the South Block A PSC offshore North Sumatra.

Earlier this month, the two oil companies agreed on a merger via exchange of shares. Under the terms of the deal, Peak will be merged into Octanex.

?The main rationale for our support of Peak is our interest in the two projects which they hold; a brownfields oil development in the Philippines (Cadlao) and a well-situated onshore exploration block in North Sumatra (South Block A),? Geoff Albers, Chairman of Octanex, said in his address to the firm?s Annual General Meeting on Thursday.

The firm said in its website that South Block A PSC covers 2,105 sq km offshore North Sumatra. Peak is the operator with a 38.25 percent effective interest through Renco Elang Energy (REE). It is located in the prolific North Sumatra basin and ?strategically located to near discoveries of more than 1 billion barrels of oil equivalent?.

2D seismic acquisition is underway in the block and drilling has been planned for 2014.

According to The Indonesian Oil & Gas Book 2013 published by Petromindo, a study in 2011 concluded a prospect in the block, called Amanah, has a most likely (2C) contingent resource in excess of 40 million barrels of oil from six potential reservoirs. Other prospects in the block include three large gas prospects on trend with the giant Arun gas field.

Editing by Johannes Simbolon