Terang field project closer to production target

Kangean Energy Indonesia Limited is now moving closer to deliver 300 million cubic feet of gas per day from its Terang field within the Kangean PSC, to East Java market, PT Energi Mega Persada Tbk said.

Energi Mega said first gas flare from one of the field gas wells was ignited on the tip of the Floating Production Unit?s (FPU) flare tower recently during the well clean up operation, proving good connections from the well to the FPU.

?This brings Terang gas development project, within the Kangean PSC, another step closer to its target to deliver 300 million cubic feet of gas per day to the secured market in East Java,? the company said in a statement.

The CEO of PT Energi Mega Persada Imam Agustino, said, ?The gas supply from our Terang field in Kangean PSC block will form a significant portion the company?s production volume in the next 24 months.?

Kangean PSC is located in East Java, and is currently operated by Kangean Energy Indonesia Limited. Kangean PSC is 50 percent owned indirectly by Energi Mega, 25 percent owned by the Mitsubishi Corporation (Japan), and 25 percent owned by the JAPEX (Japan).

Kangean PSC has proved and probable reserves of 9.6 million barrels of oil and 1.3 trillion cubic feet of gas as of December 31, 2011.

Editing by Roffie Kurniawan