Resolute Energy says Indonesian operations adds 1 million barrels of proven reserves

Canadian independent oil company Resolute Energy reported Monday that it drilled 15 wells from July to December 2002 in its Indonesian operations, resulting in 13 oil wells and 2 dry holes.

The company said drilling included field extensions for both the Sembakung and Tanjung Lontar contracts and added 1.0 mmbbl of proven oil reserves at an estimated cost of $6.42 per bbl.

The company operates Sembakung oil block in Northeast Kalimantan and Tanjung Lontar block in South Sumatra under technical assistance contract (TAC).

Resolute Energy said average production from Indonesian operation in the fourth quarter of 2002 was 2,300 bpd.

The company also initiated a pilot water injection program to test the viability of a pressure maintenance scheme for the Sembakung field. One well was converted to water injection and since October has been injecting approximately 2,700 bpd, restricted by pump capacity. Adjacent producing wells are being monitored and are performing well. When fully implemented, a waterflood program has the potential to significantly increase recoverable reserves over the remaining contract term.

For 2003, the plan includes additional field extension and advancing the waterflood project toward full implementation, said the company. (alex)