Santos downgrades Jeruk resource

Australian oil company Santos Limited said on Friday that crude contingent resource in the Jeruk discovery in Sampang PSC, offshore East Java is likely below previous estimate of 170 million barrels following results from Jeruk-3 appraisal well.

The company said Jeruk-3 well test from the top of the reservoir section showed that the height of known hydrocarbon column in the Jeruk structure is now considered to be approximately 145 meters compared to the originally interpreted 379 meters. The company said that interpretation of pressure data obtained to date inferred an oil water contact at approximately 4,760 meters TVDSS. The well was drilled to the depth of 4.894 meters TVDSS.

?This is a complex reservoir and further appraisal will be required to determine whether a common oil water contact exists across the structure,? the company said.

A test from the bottom hole section of the Jeruk-3 appraisal well is planned for next week.This test is expected to confirm the interpreted location of oil /water contact and provide further reservoir and pressure data, the company said.

Following the completion of the well, the rig will be released to drill another Santos well, allowing time to integrate well and seismic data to better determine the most likely resource range, Santos said.

Santos is the operator of PSC with 40.5 percent working interest. Other participants are: Singapore Petroleum Company (36 percent), Cue Energy (13.5 percent) and PT. Petrogas Oyong Jatim (10 percent). (alex)