Triangle: Pase block Q4 production drops to 16 mmbtu
Saturday, January 31 2015 - 02:52 AM WIB
ASX-listed Triangle Energy Ltd said that gas production from three wells at the Pase Block in Aceh during the fourth quarter of last year totaled 16 mmbtu.
The company did not provide comparative figure, but previous report by this portal said that output in the quarter ending September of last year reached 32.2 mmscf, which means that the gas production in the quarter ending December had dropped significantly.
Triangle said in its quarterly report seen Saturday that the Pase Block production facility was shut in on October 11, 2014 due to a regular maintenance program of the Exxon Arun plant production facility. Triangle?s Pase production feeds directly into this facility and will remain shut in due to the expiry of the export LNG contract.
Elsewhere, Triangle said in the report that it continued technical studies over the Pase Field with the intent of maturing in-fill drilling opportunities to access up-dip gas adjacent to existing producing wells.
?Triangle?s 10 year work program for the Pase PSC has been designed on domestic gas prices where demand remains strong with robust price structures. Domestic gas sales will be negotiated at a price in the US$6-$8/mmbtu range. The economics of the Pase field remain strong despite the recent drop in oil prices,? the company said.
The new gas pipeline between Arun and Medan, the largest city in Sumatra and the fourth largest city in Indonesia has been completed, and is currently undergoing testing and commissioning. Triangle Pase is ideally positioned to take advantage of this new gas infrastructure, the pipeline follows the Pase block from the Northern to southern boundaries. Upon PSC award and a successful drilling campaign the pipeline offers an immediate tie in opportunity, Triangle said.
Triangle continues as the operator of the Pase oil and gas fields. On 21 November 2014, the Indonesian Minister of Energy and Mineral Resources publically confirmed that the PSC will be extended for an additional 20 years.
?The company is awaiting official confirmation of the 20 year extension and the effective date of the extension. Triangle looks forward to operating the Pase field with their Joint Venture partner, the Acehnese Government,? Triangle said.
Triangle has submitted a full 5 year Exploration & Development Work Program for the Pase block to upstream oil and gas authority SKK Migas. The long term extension will enable Triangle to implement this Work Program to maximize the exploration potential of the Pase field.
Editing by Reiner Simanjuntak