Premier Oil updates Indonesian operations

The following is an excerpt taken from Premier Oil’s report published on Wednesday

 

Natuna Sea Block A

Following successful completion of the four-well West Lobe development drilling programme, it was decided not to drill a fifth development well.  The Seadrill-5 rig has been released to dry dock for repairs.  The Central Lobe oil development well and the remaining exploration programme for the second half has been deferred.

Discussions regarding the commercial framework for further gas sales into Singapore and Batam Island continue.  We await formal Indonesian government approval of the terms.

 

North Sumatra Block A

Premier’s purchase of an increased equity stake in North Sumatra Block A was completed in January 2007 for $36 million.  Medco Energi assumed operatorship and have been pursuing gas sales negotiations and a plan of development for the Alur Siwah, Alur Rambong, and Julu Rayeu fields. 

A gas sales MOU has been signed and in accordance with the draft development plan, first gas frothis project is on schedule for 2010.  Initial studies have been completed on the potential to recover additional oil reserves elsewhere on the block.

 

Kakap Block

The Pancing-1 well on the Kakap Block in Indonesia was spudded on 28th June by the Frontier Duchess rig.  The well is expected to reach target depth by end-August and is targeting a 100 bcf gas prospect.  Premier holds an 18.75% interest in the Kakap Block. (end of excerpt)