SPE seeks staged development permit for C. Sumatra oil field

Sumatera Persada Energi (SPE) is currently seeking approval of BPMIGAS for the staged development of Pendalian oil field in West Kampar PSC, onshore Central Sumatra with the objective of bringing the field into production in the third quarter on 2008, partner reported on Wednesday.

Australian oil firm Oilex Ltd. said the field is expected to produce 4,500-6,000 BPD from 3-4 production wells.

Due to the shallow depth of the reservoir and low volume of associated gas, production from the Sihapas Sandstone oilfields in adjacent areas is carried out by installing beam pumps from inception to provide artificial lift, the company said.

The current best estimate of the resource, 12 million barrels of oil in place based on a single zone, will be revised when the proposed 3D seismic survey is acquired over the field, it added.

?It is intended that early cash flow generated by Pendalian production would be applied to the exploration of highly prospective trends that have been recognized in the northern part of the block and in the area nearby to Pendalian Field,? the company said.

SPE, the block?s operator, has 55 percent interest in the block with Oilex having the balance. (denny)