Oilex increases stake at C. Sumatra oil block

Australian oil, gas firm Oilex Ltd announced on Friday it has reached deal with PT Sumatera Persada Energi to increase interest in West Kampar PSC onshore Riau to 60% from 45 percent currently.

SPE will retain operatorship and 40 percent interest in the block.

The West Kampar PSC area contains the Pendalian oil field, which is estimated to contain 13.7 million barrels of oil with first phase production rate of 1,800-2,000 BPD anticipated to start during the fourth quarter of 2008.

As compensation for SPE?s 15 percent interest, Oilex will assume certain operational costs for SPE and a phased cash payment. The carried costs incurred by Oilex on behalf of SPE will be recovered preferentially by Oilex from production revenues.

West Kampar PSC was 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)