The South Block A Joint venture has identified an attractive portfolio of leads with combined P50 Unrisked Prospective Resource1 of 515 BCF gas and 25 MMBBL oil/condensate with Lion's share being 209 BCF gas and 10 MMBBL oil/condensate. An estimate of probability of success of these leads range from 11 to 48%.
Lion's share of prospective resources following the default of POGI are detailed in the following table:-
1Prospective resources: the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
2Aggregation method: Prospective Resources in this Table have been estimated probabilistically at prospect level but combined arithmetically to provide the portfolio number.
The largest of the prospects is Jerneh, which has over 60 km2 potential areal closure and has a similar objective as the 2013 Matang discovery in neighbouring Block A. The Joint Venture is currently working on plans to drill this exciting prospect in 2017.
In 2014, the Joint Venture completed a 183km high quality 2D seismic survey which targeted the Simpang, Jerneh, Amanah, Sungai lyu and the Paya Bili prospects. The seismic survey was completed safely and on budget. The data has been processed and interpretation has confirmed a highly attractive prospect portfolio. Subsequent to these results, the joint venture selected the Amanah Timur oil and gas prospect for the 2016 commitment well to test the Paya Bili Prospect. The joint venture anticipates selecting the large, operationally more challenging, Jerneh gas/condensate target for a planned late-2017 drilling campaign.
The joint venture has also identified potential for significant oil or gas prospective resources in tight sandstone and tight carbonate reservoirs within some of the large structural anticlinal trends. In addition, Lion considers that the block has substantial unconventional shale gas potential and existing conventional rights holders have preferential rights to conduct an unconventional joint study through the direct proposal process.
The Amanah Timur-1 well had a planned total depth of approximately 570m KB and was designed to test a well-defined anticline which has existing shallow oil reservoirs that produced approximately 200,000 barrels of oil in a period prior to WWII.
The well spudded on 3 January 2017 and 9 5/8” casing was set at 78.5m KB. The well drilled an interbedded sandstone, claystone, shale and siltstone section within the Late Miocene age Keutapang Formation in 8 ½” hole. Key objective intervals were penetrated between 26-58m high to pre-drill prognosis with strong gas and good oil shows. The total depth of 347m KB was reached on 11 January 2017.
High gas readings encountered from the “700” sandstone objective required the mud weight to be raised from 11 ppg to approximately 14 ppg with some gas flared reducing the gas influx in the mud. During operations to ensure the well was stabilised, the drill string unfortunately became stuck. Efforts to free the pipe were unsuccessful and the joint venture, supported by the drilling contractor and the Indonesian regulator, decided the most prudent action was to cement the well to ensure isolation of hydrocarbon zones. Cement was pumped early on 19 January 2017, plugging and abandoning the well. Lion is currently working on appraisal plans.
Please click here to view further information on the completion of the Amanah Timur-1 well.