Premier reports Indonesian operations update
Thursday, September 20 2007 - 08:16 AM WIB
The following is an excerpt from
Production and development
In the first half of 2007, the Premier operated Natuna Sea Block A in Indonesia sold an overall average of 126 billion British thermal units per day (BBtud) (gross) from its gas export facility while the non-operated Kakap field contributed a further 68 BBtud (gross). Oil production from Anoa averaged 2,579 barrels of oil per day (bopd) (gross) and from
Kakap 8,162 bopd (gross).
Overall, net production from
West Lobe completion and commissioning was carried out in January and February. Two additional West Lobe wells were brought on stream, giving a total of four wells producing from the West Lobe platform.
Negotiations continued for the sale of further gas from Natuna Sea Block A with prospective buyers in Singapore . At the end of the first half of 2007, initialled Heads of Agreement were in place for the supply of 100 million standard cubic feet per day (mmscfd) of gas to a buyer in Singapore
Target date for first gas is the end of 2010. In January 2007, we acquired an additional 25 per cent working interest in the North Sumatra Block A Production Sharing Contract (PSC) onshore , which increases Premier’s net interest to 41.67 per cent. The block has undeveloped discoveries independently certified as holding over 650 billion cubic feet (bcf) (gross) of proved and probable reserves. The PSC operator is progressing detailed gas sales negotiations, and a Memorandum of Understanding (MOU) has been signed for delivery of gas to fertiliser plants and for electricity generation in
Exploration and appraisal
In Indonesia, the Ibu Lembu-1 and Gajah Sumatera-1 (formerly referred to as Gajah Puteri-3) exploration wells in Natuna Sea Block A were drilled in the first quarter of 2007. Ibu Lembu-1 was a follow up to the Lembu Peteng-1 discovery of 2006; the well encountered gas and further studies are under way to determine the potential of the Lembu Trend. Gajah Sumatera-1 encountered some gas shows while drilling, however wireline logs indicated that no significant hydrocarbons were encountered and the well was plugged and abandoned. At the end of the period, the Pancing-1 well on the Kakap block was drilling. This well identified hydrocarbons and was subsequently tested. Exploration studies continue on the prospect portfolio in the area to work up targets for future drilling campaigns.
In March 2007, Premier was awarded the Tuna PSC licence (Premier operated net interest 65 per cent) in . The Tuna Block is located adjacent to and immediately south of existing Premier interests in Block 07/03 (previously Block 7&8/97) and to the southeast of Block 12W in Vietnam. This provides an excellent opportunity for us to leverage our deepening knowledge of the area and work has commenced with planning for seismic acquisition in 2008.
Within our Buton PSC (Premier net interest 30 per cent) in Indonesia, the operator is moving ahead with acquisition of gravity and magnetic data in order to optimise planned 2D seismic acquisition, expected to take place in early 2008. (end of excerpt)