Peak Oil: Seismic data recording commenced in South Block A
Friday, December 6 2013 - 02:50 AM WIB
ASX-listed Peak Oil & Gas Limited (Peak) announced Friday that seismic recording has commenced at South Block A (SBA) and seismic data for the first line received.
This recording follows considerable preparatory work including surveying, line-clearing and drilling shot holes. Initial indications are that the data is of excellent quality and will achieve the objective of better understanding the leads and prospects already defined, the company said in a filing to the stock exchange.
The 2D seismic survey will comprise around 170 line km of modern seismic data acquisition located to mature and prioritize the best seven oil and gas leads to prospect status, one of which will be selected for drilling next year. Completion of the seismic is anticipated through February 2014 and drilling through the second half 2014.
Peak holds an effective 38.25 percent interest in the SBA Production Sharing Contract (PSC), located in North Sumatra, Indonesia, and operated by Renco Elang Energy Pte Ltd (REE), a company controlled by Peak, with a 51 percent interest. Other Peak?s partners in SBA are KRX Energy Pte Ltd (KRX) and PT Prosys Oil & Gas.
The SBA PSC is located in the prolific North Sumatra Basin in close proximity to established pipelines and facilities. It contains proven hydrocarbons with gas and oil flows from old wells. Historical 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.
Seven oil and gas leads at SBA together provide an Unrisked P50 Prospective Resource of 439 BCF of gas and 47 MMBBLS of oil and condensate. The largest of the gas/condensate leads has been mapped to have the potential to contain an Unrisked P50 Prospective Resource of 285.4 BCF Recoverable Gas and 15.9 MMBBLS Condensate.
Editing by Reiner Simanjuntak