Santos announces Madura PSC farm-in

Australia?s largest oil and gas firm Santos Limited announced on Monday a farm-in agreement with Canadian oil and gas firm Talisman Energy to acquire the latter?s 75 percent working interest and operatorship in Madura production sharing contract (PSC) offshore East Java.

The agreement with Talisman (Madura) Ltd would allow Santos to farm-in to the 4,246 square kilometer Madura Offshore which is located 102 kilometers east of Surabaya in shallow water.

"The Madura PSC farm-in leverages our recent discovery in the Sampang PSC. The Madura PSC is on-trend with the Oyong oil and gas discovery and the Anggur prospect where Anggur- 3 has commenced drilling. The farm-in gives us greater exposure to this emerging hydrocarbon play,? said Santos? managing director John Ellice-Flint.

"Santos is aiming for rapid development of discoveries and is targeting production from the Oyong field within 24 months,? he added.

Santos said it would drill one well in Madura PSC in 2001 at its sole cost.

The Madura Offshore PSC permit is 35 kilometres from the Oyong -1 and 2 hydrocarbon discoveries at Sampang PSC that intersected a 145-meter hydrocarbon column, 110 meters of gas and 35 meters of oil. (alex)