Aabar Petroleum Investments Company PJSC (“Aabar”) announces it has completed drilling and testing operations on the Mengoepeh South-1 exploration well in the Tungkal Production Sharing Contract (“PSC”) onshore Sumatra, Indonesia.
Mengoepeh South-1 was drilled to a total measured depth of 1,502 metres and encountered 70 metres of net oil pay over a gross pay interval of 188 metres true vertical depth. Four drill stem tests were conducted on the well and flowed at a combined rate of 2,065 barrels of oil per day (“bopd”).
The Mengoepeh South-1 well is located 2.5 km from the existing Mengoepeh oil field, which commenced production in December 2004. The well has been completed as a production well with the ability to flow from two zones. Production will be processed at the nearby Mengoepeh production facilities.
“This successful exploration well confirms the structural integrity of a new accumulation south of the Mengoepeh field and gives us the confidence to expand our development activities in the Tungkal PSC following receipt of regulatory approvals,” said Chris Gibson-Robinson, Aabar’s Vice President Operations & New Business Development (Southeast Asia).
Background
Aabar is an oil and gas exploration, production and drilling company headquartered in Abu Dhabi and is a public joint stock company listed on the Abu Dhabi Securities Market. Aabar has two divisions, Dalma Energy, which is focused on drilling operations, and Pearl Energy, which is engaged in exploration and production in Southeast Asia. Aabar’s net working interest production currently stands at more 20,000 barrels of oil per day from four fields in Indonesia and Thailand. The group plans to drill 10-15 exploration wells in 2007.
The Tungkal PSC covers an area of 2,288 sq. km. Aabar, through its wholly owned subsidiary, PEARLOIL (Tungkal) Limited, is operator of the Tungkal PSC and holds 70% participating interest. The remaining 30% participating interest is held by Fuel-X Tungkal Limited (“Fuel-X”).
Fuel-X is wholly owned by Fuel-X Cyprus Limited, which is in turn wholly owned by Fuel-X International Inc., a privately owned oil and gas company incorporated in Alberta, Canada.
