Salamander updates Indonesian ops
Thursday, August 25 2011 - 07:27 AM WIB
Production and Development
Kambuna Field
Average daily gross production from the field was in‐line with expectations at 11,100 boepd. This comprised 40 MMscfd of gas and 2,800 barrels of condensate per day. There was no downtime to production during 1H?11. The deepest well on the structure, the K‐2 well, has now been in production since 3Q?09 and has yet to see any water. This gives encouragement that the tank of gas could be larger than that currently modelled. The Kambuna partnership is planning to drill a well to the north of K‐2 to investigate the potential of the reservoir in this area to add reserves and production. The well, K‐5, will be drilled from the Kambuna platform and, if successful, will be available for immediate production tie in.
Offshore Northwest Java PSC (?ONWJ?)//Southeast Sumatra PSC (?SES?)
Production from ONWJ and SES was in‐line with expectations averaging 63 Mboepd and 56 Mboepd, respectively. Extensive infill drilling continues across both licences to replace reserves and maintain production levels.
Kerendan Field Development, Bangkanai PSC
On 28 June 2011 the Group signed a Gas Sales and Purchase Agreement (GSPA) with PLN for the supply of 121 Bcf of gas, at a price of $4.79 per MMbtu, with an escalator of 3% applicable every 3 years. PLN is constructing a power plant 3 km from the field, with initial daily volumes expected to be 20 MMscf per day. As a result of signing the GSPA, the Group will book an additional 16.5 MMboe of proven reserves at year end and there is a further 162 Bcf of gross contingent resource awaiting commercialisation. The power plant is being constructed so that it will be able to handle additional gas once the Kerendan reservoir has proven itself. Over time it can be expected that these resources will be the subject of an additional GSPA.
Development drilling is expected to commence in 2H?11, with gas deliveries expected to be available from mid 2013.
South Sembakung Development, Simenggaris JOB‐PSC
The development of the South Sembakung field is underway. Two development wells were completed in 1H?11; two more are planned for 2H?11. Construction of the gas processing facilities is progressing on schedule.
Exploration and Appraisal
Bontang PSC/Southeast Sangatta PSC (100% & 75% ‐ Operator)
Following the success of the Angklung‐1 exploration well at the end of 2010, the Group has completed extensive technical work on the discovery and its implications for the North Kutei basin. It has also completed initial interpretation of the 3D seismic survey over the Southeast Sangatta PSC. This survey indicates that the prospectivity continues into the SE Sangatta licence, with some large prospects apparent from the fast tracked volume of the 3D seismic data set. The Group?s initial assessment is that the potential in the North Kutei basin is principally for gas. However, the discovery of oil in tight Miocene age rock in Angklung‐1 demonstrates that there is also a generative oil system in this part of the basin. This is also supported by clear evidence of naturally occurring liquid hydrocarbon slicks across the acreage, as seen using satellite slick detection technology.
The Group believes that the acreage demands a multi‐well drilling programme in order to explore the full extent of the prospectivity and is therefore planning for an extensive drilling programme on multiple prospects in 2012.
The Tutung Alpha‐3 appraisal well is expected to spud in 4Q?11. This is planned to be the final appraisal well on the Tutung gas‐condensate discovery before a plan of development is submitted.
Bangkanai PSC (69% Operator)
There is considerable exploration potential in the Bangkanai PSC stepping out from the Kerendan field. Preparations are being made for a two well campaign in the Bangkanai PSC to start during 4Q?11. The wells will target prospects in the proven Oligocene Berai carbonate formation and will investigate the potential of the deeper Eocene clastic section; this section is productive further south in Kalimantan but has yet to be fully investigated in the Bangkanai area. Exploration and appraisal operations will commence with the Sungai Lahei‐1 well drilled within the productive area of the Kerendan field but with additional objectives both shallower and deeper. Following this, the West Kerendan ‐1 well is planned to test a Kerendan field lookalike and a sizeable Eocene prospect below.
Bengara‐1 PSC (41.7%, Operator)
The South Sebuku‐2 well has been drilled to planned total depth and has encountered gas in the Tabul sandstone formation. Due to adverse weather conditions the operator has experienced delays in mobilising the testing equipment. This is expected to arrive on location in the coming weeks.(end of excerpt)