Release: MedcoEnergi: Exploration results in Libya encouraging
Tuesday, July 10 2007 - 08:02 AM WIB
(JAKARTA, July 9, 2007): PT Medco Energi Internasional Tbk Result is pleased to provide an update of its exploration operations by Medco International Ventures Limited (“MIV”), a wholly owned subsidiary of the Company, with its joint venture operator Verenex Energy Inc. in Area 47, Libya.
Oil Discovery in A1-47/02
Well The Operator has submitted a preliminary appraisal report to the Libyan National Oil Corporation ("NOC") on its first light sweet crude oil discoveryA1-47/02 as required under the Exploration and Production Sharing Agreement ("EPSA") for Area 47. The report incorporates results from the drilling, formation evaluation and flow testing programs and makes recommendations on additional seismic reprocessing and interpretation, reservoir analysis and additional appraisal drilling in areas adjacent to the A1-47/02 structure to determine the size of the discovery and potential recoverable resources.
“As we have announced to public earlier, the Operator has completed the flow test for A1-47/02 well at a maximum combined rate of 12,500 barrels of oil per day (gross) at choke sizesup to 128/64ths inch and 6,586 barrels of oil per day at a restricted choke size of 32/64ths inch, from 174 feet of perforations in three test intervals in the Lower Acacus Formation. These flow tests confirmed the excellent quality and deliverability of the sandstone reservoirs discovered in the LowerAcacus in this well and provided information to calibrate wireline log and other formation evaluation results,” said Andy Karamoy, Corporate Secretary of MedcoEnergi.
Successful Flow Test in B1-47/02
Well The Operator has successfully completed flow tests from 312 feet of perforations in five reservoir intervals in the Lower Acacus and Middle AcacusFormations in its second exploration well B1-47/02. The combined measured flow rate of light sweet crude oil exceeds the rate achieved in the Operator's first exploration well A1-47/02.
C1-47/02 Well Flow Test is Encouraging
The operator has completed flow tests on three intervals in the Lower Acacus Formation at its third exploration well C1-47/02. The Operator plans to test up to five reservoir intervals from approximately 188 feet of perforations including four intervals in the Lower Acacus and one interval in the shallower Aouinet Ouenine Formation.
D1-47/02 Well is Currently Logging
The Company's fourth exploration well D1-47/02 commenced drilling on May 25, 2007 and reached total depth of 9,720 feet. An extensive logging and formation evaluation program is underway similar to the program carried out on the Company's first three exploration wells.
New 3D Seismic Acquisition Program Underway Survey
Work has commenced for the Company's planned 2007/2008 3D seismic program along the eastern side of Area 47. The program covers an area of approximately 1,225 square kilometres and encompasses more than 20 prospects and leads identified from the Company's 2D seismic acquisition program completed in 2006.
“We are very pleased with the excellent result from the flow test of the four exploration wells which were carried out by our Operator in Area 47, Libya. We projected that there is a significant reserves of light sweet crude oil there. We hope that our reserves in Area 47 will strengthen our portfolio and will give significant contribution to the overall performance of MedcoEnergi in the future,” told Andy.
Verenex is a Canada-based, international oil and gas exploration and production company with a world-class exploration portfolio in the Ghadames Basin in Libya and the Bay of Biscay offshore France. Verenex is the operator and holds a 50% working interest in Area 47. MIV, a wholly owned subsidiary of MedcoEnergi, is involved mainly in international exploration and production activities. It holds a 50% working interest in Area 47.
MedcoEnergi is a publicly listed integrated energy company in Indonesia, with business involvement in oil and gas exploration and production, oil and gas drilling services, methanol production, LPG production and power generation. It has operations in several areas in Indonesia, Oman, Libya, and the Gulf of Mexico in the United States. (end of release)