Range completes acquisition of oil field in Aceh
Tuesday, October 31 2017 - 01:10 AM WIB
US firm Range Resources Limited said it has completed the acquisition of a 23 percent interest in Perlak oil field, Aceh Province.
This follows a sale and purchase agreement signed by its wholly-owned Hong Kong-registered subsidiary Range Resources HK Limited to acquire 60 percent shares in Indonesia-registered PT Hengtai Weiye Oil and Gas for US$3.2 million, providing it with an indirect 23 percent shares in the oil field, which will increase to 42 percent once a minimum work program has been completed.
?As per terms of the acquisition, the company has acquired a 23 percent interest (to increase to 42% upon completion of the minimum work program) in the Perlak field,? Range said in a statement on Monday.
The company said the agreed minimum work program covers a 3-year period and includes geological and geophysical studies, well surveying, workovers, and drilling of one new well. The initial geological and geophysical studies have already commenced.
?We are extremely pleased to have completed the acquisition of this highly exciting project. It provides the company with exposure to another well-established hydrocarbon province and an opportunity to unlock the full potential of the oilfield with a long history of production. Our work program is aimed at swiftly re-initiating production from the existing wells, firming up the field development plan, and fully exploiting the potential resources,? said Range Chairman, Kerry Gu in the statement.
He explained the company is currently in the process of building an experienced team of people in Indonesia to ensure the operations run smoothly and efficiently.
Range said in August that the Perlak field has a long history of oil production of approximately 60 million barrels (mmbbls). ?Range estimates material remaining oil in place of up to 500 mmbbls (this figure covers all reserve and resource categories), which demonstrates the high prospectivity of the field and substantial reserves and resources growth potential,? the company said.
The Perlak field is located in an established hydrocarbon province of Aceh, Northeast Sumatran basin and covers an area of 10.4 km2. The field is one of the oldest producing oilfields in the world, first discovered in 1899. It lies on-trend with many producing hydrocarbon fields, including the giant Arun field.
The Perlak field was produced primarily in the period up to the early 1940s from the crestal part of the structure (the developed area). Over 300 wells have been drilled to date, with 250 of those put into production. The field has produced approximately 59 mmbbl to date from very shallow depths of less than 1,000 meters (3,300 feet). The oil is very light with average API of 45-50 degrees. The average recovery factor of the developed area to date is estimated at 36 percent.
The field was shut-in during World War II and there has been limited activity carried out since that time, mainly by smaller local operators. Eleven wells had been drilled on the field since 1970s. Two of the more recent wells drilled in 2011 were put into production of 180 and 100 bopd, respectively, producing very light high quality oil 53 degrees API.
Editing by Reiner Simanjuntak