Schlumberger confirms Matrix?s N. Sumatra oil reserves

Australian oil company Matrix Oil NL said on Monday a comprehensive technical and financial due diligence study on the Langsa TAC offshore North Sumatra late April this year conducted by Schlumberger Oilfield Services confirmed previous estimates of proven and probable reserves in the field.

The due diligence was conducted by Schlumberger, one of Matrix main creditors, as part of a proposed financing for the work over and re-entry of the L1 well, which was shut-in during January 2002 following the earlier detection of a leak of hydraulic fluid in the control line to the sub-sea production system.

Matrix said by using the probabilistic volumetric estimates for original oil in place and recoverable oil reserves, Schlumberger estimated that H field contained 25.6 million stock tank barrels of oil (MMSTBO) of oil in place and recoverable reserves of 6.41 MMSTBO with 50 percent probability (P50), while for L field was estimated to contain 38.7 MMSTBO of oil in place and recoverable reserves of 9.67 MMSTBO.

?The combined P50 total of 16.1 MMSTBO confirms earlier estimates and, in fact, is 3.6 MMSTBO barrels more than the figure of 12.5 MMSTBO used in the plan of development upon which the project was designed and executed,? said Matrix in a statement.

Matrix also said Schlumberger preferred work over of the L1 well, completing of the H3 well and drilling of an infill well in L field as the best development strategy for Langsa, as it would see production increase to 10,000 BOPD. Matrix said the preliminary development expenditure for such scenario would be up to US$ 19 million. (alex)