Vital Resources outlines S. Sumatra small fields development strategy

Calgary-based junior oil firm Vital Resources Corp. will carry out primary depletion and EOR to re-activate in its soon-to-be-acquired Ramok and Senabing old oilfields onshore South Sumatra.

The company said on Wednesday that under the primary depletion, development will focus on pool extensions and deeper drilling targets, while EOR scheme will be carried out in the form of a waterflood for the existing productive horizons.

Implementation of a secondary recovery scheme should allow production levels to approach historical volumes. Historical production records indicate dozens of wells that produced in excess of 150 BPD, with several wells exceeding 400 BPD, the company said.

New facilities will be required to handle the increased volumes of oil and water gained from waterflood injection.

The company will also conduct a 3D geophysical survey encompassing both fields to reduce possibility of dry wells and to find undeveloped reserves within the fields.

Vital Resources has signed an LOI to acquire the fields for US$13.6 million, to be paid with combination of cash and stocks. (alex)