Sound Oil updates Indonesian operations
Tuesday, June 5 2007 - 03:20 AM WIB
UK-based oil firm Sound Oil announced its preliminary results for the year ended 31 December 2006 on Monday. The following is an excerpt on Indonesian operations.
Citarum PSC
Activity during the last year has been focused on the preparations for drilling the first two exploration wells on the Pasundan and Kujang prospects in the northern part of the licence close to the Jatirarangon gas field and the JGN-1 oil discovery. Both wells will be drilled to test multiple reservoir levels in Miocene (carbonates; Baturaja Fm) and Oligocene (clastics; Talang Akar and Jatibarang Fms); the Jatibarang Fm is the producing formation in nearby Jatirarangon field.
The wells will target separate wrench-controlled fault compartments along a NW-SE trend. The compartments are probably sealed from one another, but could be part of a connected megastructure at certain levels.
Estimated P50 prospective resources4 for both structures combined are 570 bcfg (gas case P10, 910 bcfg).
These two wells will form part of the work commitment on the licence. The remaining obligations of 750 km of new 2D seismic data and two further exploration wells will be undertaken in 2007-2008. The Pasundan-1 well was spudded with the Great Wall rig 93 on 9 May 2007 and the Kujang-1 wellsite is currently being prepared.
Bangkanai PSC
Independent assessment of Kerendan Field contingent recoverable resources by
RML-Senergy3 are:
Gross Net to Sound
(34.99%)
Proved (P1, bcfg) 187.0 65.4
Proved + Probable (P1 +P2, bcfg) 238.5 83.5
A Plan of Development (POD) for the Kerendan gas field was granted in August 2006 by BPMigas (the Indonesian government agency responsible for the supervision and control of upstream oil and natural gas business activities).
The field, first discovered in the 1980s, will be developed to supply gas to a local, new-build integrated power plant operated by Medco Power. The POD calls for the supply of 134 bcfg1 over 20 years at a maximum rate of 20 mmcfg/day2. The development plan will include re-entry of existing wells and up to five new development wells. Initial field development activities are anticipated to commence in 2007. Exploration activity on the licence included the acquisition of a 205 km 2D seismic survey as part of the PSC work commitment.
Study of the new seismic data identified new prospect areas and deeper prospective horizons below the existing Kerendan field Berai Fm reservoir. A location has been identified (Sungai Lahei-1) to test this deeper play at several levels in the clastic Tanjung Formation. The well will target estimated P50 prospective resources for of more than 400 billion cubic feet of gas (bcfg). Planning for the well is currently being undertaken for drilling in 2007. This well is one of two obligation exploration wells on the licence, for which BPMigas has granted an extension of the first exploration period to 31 December 2007.
During the coming year we shall consolidate our position in Indonesia and complete the integration of the UK and Indonesia offices. We expect to focus on adding production to our portfolio, both through development of Kerendan but also through acquisition.
The company had to welcome to the Board our new colleagues, Jossy Rachmantio, Ilham Habibie and Patrick Alexander. The company would like to thank them and the original Sound Directors, Simon Davies, Michael Nobbs and Tony Heath, for their contribution and support during the year. (end or excerpt)