Peak?s unit to drill Amanah Timur well
Wednesday, October 29 2014 - 07:15 AM WIB
ASX-listed Peak Oil and Gas announced on Wednesday its majority-owned subsidiary Renco Elang Energy Pte Ltd (REE) has selected a location for drilling in the South Block A (SBA) PSC, North Sumatra.
REE is the operator of the block with a 51% working interest.
?Following processing of the 183 km seismic survey, seismic interpretation has led to the selection of a drilling location for a low risk, shallow (around 700 m total depth) well with near‐term commercialisation potential. The well will target high quality oil on the Paya Bili structure. Small volumes of oil were produced from this structure during the early 1900s. The location of the proposed shallow well, to be named Amanah Timur-1,? the firm said.
SBA is located in a highly regarded area of the prolific North Sumatra Basin, in close proximity to established pipelines and facilities.
The presence of a very active petroleum system in the vicinity of the proposed Amanah Timur-1 well location is validated by both light, 50? API, high quality live oil samples, produced from shallow boreholes hand drilled by local residents and confirmed by the record of historic oil production on the Paya Bili structure.
SBA is prospective for both oil and gas development. Following the Amanah Timur-1 well, REE intended to drill a subsequent well, targeting an attractive gas-condensate prospect which is being matured through seismic interpretation activities.
The gas pipeline linking Arun in Aceh and Medan in North Sumatra now under construction will provide a new incentive for gas exploration in the block, the firm said, adding the open-access pipeline passes through SBA and is reported to have a capacity of 400 mmscfd and a forecast spare capacity of around 200 mmscfd.
Editing by Johannes Simbolon