Peak completes seismic survey at SBA PSC, encounters live oil

By Romel S. Gurky

ASX-listed Peak Oil and Gas Ltd announced Tuesday that it has completed seismic recording operations acquiring 183 km of 2D seismic data survey at the South Block A (SBA) PSC in North Sumatra.

?Drilling prospects will be matured following receipt of final processed data, with a drilling location to be selected in the near term to target an attractive shallow oil prospect for drilling later this year, to be followed in 2015 by a deeper, wet gas, drill target,? the company said in a statement.

Early planning for 2014 drilling is underway and an operational schedule will be finalized over the next few months, it added.

Peak?s majority controlled company, Renco Elang Energy Pte Ltd (REE) is the operator of the SBA PSC with a 51 percent working interest, while the remainder held by KRX Energy Pte Ltd and PT Prosys Oil & Gas.

Peak said that during seismic line clearing operations over the Simpang lead, high quality, live oil was sampled from shallow wells, hand drilled by locals and producing around 100L (3-4 Jerry Cans) per day. A similar occurrence was also encountered at Alur Sentang, to the north of the Paya-Bili lead.

?These shallow oil shows validate the presence of a very active petroleum system in the immediate locality, close to SBA Leads, and supports the oil potential in the block,? the statement said.

Elsewhere, Peak said that SBA is prospective for both oil and gas exploration with both commodities in strong demand within Sumatra. A new gas pipeline is under construction between Arun and Medan, the largest city in Sumatra and the fourth largest city in Indonesia. The pipeline passes through SBA (above map) and is reported to have a capacity of 400 MMSCFGD and will transport gas from the Arun gas facilities (including an LNG receival terminal currently being built).

?Peak understands it will be an open access pipeline with around 200 MMSCFGD forecast spare capacity. The pipeline is located close to key prospects, it represents a potentially attractive gas transportation option and could assist in commercializing any gas discovery Peak should make through its drilling program,? it said.

The successfully acquired seismic data was located to mature and prioritize five oil and gas leads to prospect status, one of which will be selected for drilling later in the current year, Peak said.

Editing by Reiner Simanjuntak