Sugih announces new oil, gas discovery at Lemang PSC

By Romel S. Gurky

IDX-listed PT Sugih Energy Tbk announced Wednesday that the drill stem test (DST) at the Akatara-2 well within the Lemang PSC in Jambi, Sumatra, has been completed and confirmed the oil and gas potential at the well, paving the way for preparation of commercial operation of the block.

Sugih said that on February 17, the operator of the block reported that the DST at the Akatara-2 well has been completed, and shows positive results, with initial flow rates of 2,300 bopd, and 5.4 mmscfd of natural gas. Since then, Akatara-2 has been temporarily suspended and declared as a discovery well.

The oil and gas finds at Akatara-2 well marks the third successful findings in the Lemang PSC. On May 6, 2013, Sugih announced the finding of 274 meters of gross pay at the Akatara-1 exploration well, with initial flow rates of 11 mmscfd and 380 bopd.

On December 28, 2012, the company also announced the successful findings at the Selong-1 exploration well, where the operator found 222 meters gross pay, with initial rates of 790 bopd and 16.8 mmscfd.

The combined initial flow rates of the three wells is 9,500 boepd, Sugih said. Considering the positive results of the DSTs at the three wells, Sugih and the operator of the Lemang PSC are currently making preparations for the start of the commercial production of the block, and will submit the plan of development (POD) to the authority on time.

SGX-listed Ramba Energy Limited, through its local subsidiary Hexindo Gemilang Jaya, holds a 51 percent working interest in the Lemang block as the operator, while Sugih Energy holds a 49 percent participating interest through its subsidiary Eastwin Global Investments Ltd.

Editing by Reiner Simanjuntak