PEARL to farm out E. Kalimantan gas block

Singapore Exchange-listed E&P firm PEARL Energy Limited is in talks to farm out its interest in Sebuku PSC, which is located in the deepwater of Makassar Straits, East Kalimantan to a company whose name it does not disclose.

The company said in its presentation filed with Singapore Exchange Thursday that the move is part of the company?s strategy to reduce exploration risks.

PEARL currently holds 100 percent working interest in Sebuku, which was bought from ConocoPhillips in 2003. The company did not reveal the percentage of interest it intended to sell.

PEARL estimated gas resources from discoveries made by previous operator at 328 BCF and said it was evaluating development option for the resources.

Previous operator also discovered oil in Pangkat 1 well with modest oil and gas flows of 100 bpd were established from an open hole test between 2,457-2,591 meters in fractured basement with a large oil column encountered.

The company said two wells would be drilled this year in Sebuku block.

Elsewhere, the company said it would drill up to 12 exploration wells in its Indonesian working areas next year, up from the 11 wells planned for this year. One well would be drilled in the newly acquired West Salawati Basin PSC in Papua (operator and 50 percent interst holder) and 2 well in Tungkal PSC in Sumatra (100 percent interest).

PEARL also has 34 percent working interest in Salawati Basin Block and 37 percent in Salawati Island Block, both are operated by PetroChina. (alex)