Santos, Talisman strike gas at Maleo-1 well offshore Madura

Australian oil and gas company Santos Limited announced on Thursday it had discovered gas from its Maleo-1 exploration well in Madura Offshore PSC southeast of Madura Island in East Java.

The company said Maleo-1, drilled on the flank of a large four-way dip structure, had encountered a 48 meter gross gas column between 555 meters and 603 meters in the Early Pliocene Mundu Formation limestone.

The reservoir is well developed and net pay is in excess of 95 percent, Santos said.

"The Maleo discovery is well situated, approximately seven kilometers from existing gas pipeline infrastructure supplying Surabaya, enhancing the chances of commerciality," Santos managing director John Ellice-Flint said in a statement to Australian Stock Exchange.

Further appraisal activity is required to determine the resource potential of this discovery, Ellice added.

Maleo-1 is located approximately 140 kilometers east of Surabaya in 58 meters of water.

Santos is the operator of Madura Offshore PSC with 75 percent participating interest while top Canadian oil company Talisman Energy holds the remaining 25 percent. (robert)