Ramba plans to drill Lemang block in Q4 2011
Wednesday, July 27 2011 - 10:42 AM WIB
The Selong-1 well is located in the Akatara Prospect in the Lemang Block. Ramba?s Technical Committee reached the decision to drill the Selong-1 well following further analysis and interpretation of the seismic data compiled on the Akatara prospect concluding that the Selong-1 well has a lower risk profile with resources that can be commercialized more quickly. This marks a change to the initial drilling schedule, in which drilling of the Akatara-1 well ? also located in the Akatara prospect ? was scheduled to commence in August 2011.
?After considerable evaluation, Selong-1 has emerged to be a far more attractive prospect for our first oil exploration well at Lemang. Our Technical Committee has reached this conclusion based on further analysis of 2D and 3D seismic data on the Akatara prospect, where Selong-1 is located,? said David Soeryadjaya, CEO of Ramba.
?The technical assessments indicate that Selong-1 offers stronger prospects of oil exploitation with comparably lower risks. But more significantly, the analysis shows that we could expect to commercialise Selong-1 in a much shorter time than at Akatara-1.? Ramba will commence drilling operations in Q4 2011. This start date takes into consideration the time required for approval of drilling plans from Indonesian regulator BPMIGAS in addition to infrastructure projects that must be completed. The Company will commission construction of a roadway to access the Selong-1 well, the well pad, in addition to transporting and assembling heavy drilling equipment.
Ramba is targeting two formations in the Selong-1 well; the Lower Talang Akar and the Intra Gumai. Both formations are of sandstone composition and will require the company to drill up to 6,500 feet below sea level. The Company requires approximately 30 days to drill the well, and an additional 25 to analyze the results. The amount and composition of hydrocarbon contents within the well will be known shortly after.
The Selong-1 well sits in a three-way closure situated in the Southeast portion of the Lemang block, in close proximity to the Jabung Block operated by PetroChina, an already producing oil and gas block.
A recent independent evaluation by DeGoyler and MacNaughton (D&M) for the Akatara prospect estimated recoverable mean prospective resources at 147.2 million barrels of oil, not adjusted for the probability of geologic success (Pg), and at 37.4 million barrels of oil when adjusted for geological success at 25.4 per cent. The report dated 22 July 2011 valued Ramba?s stake of the entire Lemang asset to be approximately US$193.6 million.
In October 2009, Ramba purchased a 41% interest in the Lemang Block for US$7 million, financed through internal cash resources. The purchase received final approval from BPMIGAS in November 2010. PT Hexindo Gemilang Jaya (?Hexindo?) ? a Ramba affiliate ? is the operator of the Lemang Block. The Lemang PSC, which covers an area of 3,890 square kilometres in the Jambi sub-basin of Sumatra, is valid till 2037.
A total of 4 exploration wells, 500 km of 2D seismic and 500 sq-km of 3D seismic are to be delivered under the Lemang PSC. (romel)