Ujung Pangkah co-venturers to commence drilling campaign in Dec
Friday, September 26 2003 - 08:19 PM WIB
UK-based independent oil and gas company Dana Petroleum said Friday the Ujung Pangkah production sharing contract (PSC) co-venturers planned to commence a two-well appraisal drilling campaign on the western side of the block, which is located offshore East Java, in December
?The appraisal drilling program has the potential to double current gas reserves,? Dana said in its Interim Results for the first half of 2003.
The company also said that subject to ongoing studies, it is likely that a further appraisal well will be drilled to the West of the Sidayu oil discovery, which, if successful, would create a new oil development in the region.
Analysis of results by Degolyer and MacNaughton determined recoverable gas reserves for the field to be approximately 450 billion cubic feet of liquids-rich gas (90 million barrels of oil equivalent).
Gas from the Ujung Pangkah is projected to help the shortage of gas supply in East Java province.
In December last year, Amerada Hess, the operator of the block, signed an agreement to supply around 50 million cubic feet per day of gas to the state-owned utility firm PLN?s power plant in the province.
?Final negotiations on gas sales from the Ujung Pangkah gas field are expected to conclude shortly, paving the way for final approval of the development, leading to first gas production in 2005,? Dana said.
Dana also said the preparations for development of the Ujung Pangkah gas field were now well advanced with a front-end engineering and design study completed and the technical aspects of the subsurface development plan agreed.
Dana Petroleum holds a 12 percent of working interest in the Ujung Pangkah PSC, while Amerada Hess (operator) and ConocoPhillips hold 66 percent and 22 percent respectively. (robert)
