Oilex farms in C. Sumatra oil block
Monday, May 28 2007 - 02:49 AM WIB
Oilex will pay for the interest by refunding certain past costs and funding the drilling of the Pendalian-3 exploration/appraisal well, planned for July 2007, and the acquisition of 2D and 3D seismic work commitment programs.
According to the company, the block has an existing oil discovery that can be brought into production quickly if justified by appraisal drilling and a number of highly prospective structural trends that will be the subject of an intensive exploration program.
SPE will remain the block?s operator with 55 percent working interest.
The Pendalian-3 well planned for July 2007 will appraise the oil field discovered in 1993 by the Pendalian-1 well, a cored slim hole which encountered a number of oil zones at depths ranging from 250 meters to 500 meters. Two of the zones flowed oil from drill stem tests in Pendalian-1 with maximum rates achieved of up to 530 barrels of oil per day. Independent technical work by Oilex indicates that the best estimate of the ?in place resource? for the field is 12 million barrels of oil.
If commercial productivity is confirmed by the extensive cased hole testing program planned for the conventionally drilled Pendalian-3 well, the West Kampar Joint Venture plans to acquire a 3D seismic survey over the Pendalian Field and a number of satellite structures and to accelerate development. Shallow, low cost wells and the proximity to infrastructure are attractive incentives for the rapid development of the field, said the company.
The West Kampar PSC area is located in central Sumatra adjacent to Chevron?s working area. Awarded in October 2005, the PSC work program commitment provides for the acquisition of 250 kms of 2D seismic and 50 sq kms of 3D seismic along with drilling of the Pendalian-3 well and an additional 4 exploration wells by November 2008.(denny)