Peak Oil identifies ?high potential leads? in North Sumatra
Monday, June 24 2013 - 01:32 AM WIB
ASX-listed Peak Oil & Gas Limited announced that the South Block A (SBA) joint venture has completed mapping and a prospectivity review, identifying high potential leads for further seismic and analysis in preparation for drilling of one exploration well around second quarter next year.
These leads are located in the prolific North Sumatra Basin in close proximity to established pipelines and facilities, the company said in a statement obtained on Monday.
The statement further said that SBA contains proven hydrocarbons with gas and oil flows from old wells. Previous exploration in SBA focused on shallow oil targets.
The new phase of exploration is targeting large scale wet gas driven by significant energy shortages and high gas prices in the rapidly expanding economy of the region, while overlooked high quality shallow oil remains an attractive target.
Existing infrastructure in the area will be beneficial to any drilling success in SBA and a significant new gas discovery (Matang 1), recently drilled just across the SBA block boundary, has flowed gas at 25 MMCFD, it said.
This discovery has been reported by the operator (Medco) to contain between 100 - 400 BCF. The new discovery adds to three other discoveries, including the 400 BCF Alur Siwah gas field shown on the above map. These fields in this adjacent block A are currently undergoing engineering design and the downstream infrastructure developed has the potential to improve the commerciality of any discoveries in SBA.
Seismic field operations in SBA have commenced to mature and prioritise six oil and gas leads (shown on the above map) to prospect status, one of which will be selected for drilling early next year. Seismic acquisition is expected to be completed in the third quarter of 2013.
?Together these six oil and gas leads provide an Unrisked Mean Prospective Resource of 738.5 BCF of gas and 63.8 MMBBLS of oil and condensate,? the statement said. The largest of the gas leads has been mapped to have the potential to contain an Unrisked Mean Prospective Resource of 324 BCE Recoverable Gas and 18 MMBBLS Condensate.
The seismic operation currently underway will acquire over 170 survey line km located to mature the oil and gas leads prioritized by the new mapping and prospectivity review.
Editing by Reiner Simanjuntak