Release: Seram's Oseil field development update
Monday, June 16 2003 - 05:18 AM WIB
Adelaide, June 16, 2003 - Kalrez Energy Limited is a 2.5 percent shareholder in the Seram Joint Venture that operates the Oseil oilfield. The major shareholder, and Operator of the JV, is KUFPEC (Indonesia) Limited with 97.5 percent.
Production from the Oseil oilfield commenced on December 30th 2002, with processing taking place through a Temporary Production System (?TPS?) nominally rated to approximately 12,000 barrels per day throughput.
On May 16th 2003, all Oseil wells were shut in to facilitate the demobilization of the TPS installation.
Production from Oseil for May 2003, up to the shut-in of the field for demobilization of the TPS was 81,170 barrels at an average rate of 5,073 BOPD. Cumulative production from Oseil processed through the TPS since commencement of production on 30th December 2002 was 973,931 barrels at an average daily rate of 7,109 BOPD.
The average daily production rate for the month of May 2003 was 3,245 BOPD.
The lower average rate in May was the result of:
The field was reopened on 22nd May 2003, with production directed to the skim oil tank to build stock until the MPF is ready to process the crude oil. Only one well, Oseil-2, has been online consistently during this time, while Oseil-1 was on intermittently (depending on requirements of the commissioning team), and Oseil-4 remained shut-in.
The estimated date by which High Sulphur Fuel Oil and Naphtha will be produced has been delayed until late June 2003, due mainly to material delivery delays for modifications. It is anticipated all three wells will be back on stream at this time. Final Acceptance of the new facility is now anticipated late July 2003.
The interpretation of the recently acquired 3D seismic has provided evidence that there is significant reservoir structure updip of the existing wells which were drilled based on exploration 2D seismic and consequently located too close to the oil-water contact which explains the higher than anticipated water cuts experienced during production from the initial three wells. Phase II development will enable the JV to develop the field from locations higher in the structure and this should enable higher rates and ultimate recoveries from these new wells.
The Phase II development drilling is expected to commence 1st quarter 2004, with the first of the new wells on line April 2004. (end of release)