Sugih Energy targets Lemang PSC to start production in December 2015
Wednesday, May 6 2015 - 12:48 AM WIB
IDX-listed oil and gas firm PT Sugih Energy Tbk expects Lemang block in Riau and Jambi provinces to start production in December 2015, following product and service tenders in April 2015, the firm said in its 2014 annual report released on Tuesday.
?The completion of PoD Akatara becomes the main operation in 2015,? the firm said without providing details.
In December 2012, the operator of the block, PT Hexindo Gemilang Jaya, discovered approximately 222 feet of gross pay during exploration drilling at Selong-1, the first exploration well in the block. Testing result of Selong-1 indicated flow rates of up to 790 barrels of oil per day (bopd) and up to 16.8 million standard cubic feet per day (mmscfd) of gas. This is the first discovery.
In May 2013, the operator discovered of approximately 274 feet of gross pay at Akatara-1, second exploration well in the block. Testing result of Akatara-1 indicated flow rates of approximately 11 mmscfd of gas and 380 barrels of condensate per day (bcpd). This is the second discovery.
In February 2014, testing results of Akatara-2 appraisal well indicated and discovered of approximately 2,300 bopd and 5,3 mmscfd. This is the third discovery. The operator reported that aggregate flow rates of Selong-1, Akatara-1 and Akatara-2 wells stand at approximately 9,500 barrels of oil equivalent per day (boepd).
?The Lemang Block successful exploration has incited the government to deliver a mandate concerning operator transition, from exploration program to the POD for commencement of commercial production (COCP),? the firm said.
Lemang Block has daily production of approximately 53,000 barrel oil per day (bopd). Based on volumetric study conducted by international petroleum expert De Golyer & Mac Naughton (D & M), the Lemang Blocks has an estimated 511 million barrels of oil and 467 cubic feet of gas (gross recoverable prospective resources).
Sugih Energy 49% participating interest for Lemang Block through its subsidiary Eastwin Global Investment Ltd., while 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.
Editing by Johannes Simbolon