Santos, Medco strike oil, gas in E. Java

Australian top E&P firm santos limited on Monday announced that oil and gas have flowed from its Jeruk 2 ST-2 well being drilled in the Sampang Production Sharing Contract, offshore East Java.

The company said that an open-hole Drill Stem Test (DST) preformed on the well over an 18 meter interval from 5,134 meters to 5,152 meters measured depth had resulted in a flow rate of 7,488 barrels of oil per day was recorded through a 1/2 inch surface choke accompanied by 2.21 million cubic feet per day of gas during a 5 1/2 hour flow period.

Santos said the flow rate was constrained by the throughput capacity of the surface production test facilities.

Following completion of the flow test the well was shut-in for measurement of pressure build-up, after which the testing equipment will be removed from the hole. Jeruk 2 will then be deepened in order to ascertain the full extent of the hydrocarbon column. Logs will be run when the well has reached total depth.

?These preliminary results from Jeruk 2 are very encouraging and we look forward to the final evaluation of the well,? Santos? Managing Director, John Ellice-Flint said.

Jeruk 2 was drilled to follow up the Jeruk 1 well, which finished drilling in early April 2004 about 1.6 kilometers west of Jeruk 2. The well is in the Sampang PSC in water depth of 44 meters and it is located approximately 42 kilometers from Surabaya.

Santos as the block operator has 50 percent interest in the block, while Indonesia?s E&P firm PT. Medco Sampang has 50 percent interest in the well. (alex)