Oyong oil development phase made significant progress

Santos Ltd Managing Director John Ellice-Flint said Friday that Oyong early oil development phase has made significant progress, citing that the development of the low-cost facility for the well has been 35 percent completed.

?The rig used for the installation is now positioned over the platform and has begun drilling the six horizontal oil and one vertical gas development wells. Production will be processed separately by a leased barge,? Flint said at the company?s Annual General Meeting.

?We anticipate being able to commence oil production at Oyong around the end of 2005 and gas production is planned to commence in 12 to 18 months,? Flint added.

Oyong is located in the Sampang Production Sharing Contract area, offshore East Java. The field was discovered in August 2001 45 meters below the sea level and is estimated to contain in excess of 8 million barrels of recoverable proved and probable oil and 130 billion cubic feet of recoverable proved and probable gas.

Santos operates Sampang PSC with 45 percent of working interest, while other Australian company Cue Energy Limited and Singapore Petroleum Company Limited hold 15 percent and 40 percent, respectively. (robert)