30th Jul 2008 07:00
30 July 2008
NEW RESOURCE ESTIMATE OF 13.7 MILLION BARRELS OIL FOR PENDALIAN FIELD INDONESIA
1,800 - 2,000 BOPD PRODUCTION ANTICIPATED IN Q4 2008
Oilex Ltd is pleased to report that a Plan of Development (POD) including an updated resource assessment for the Pendalian Oil Field (Oilex 45%) located in the West Kampar Production Sharing Contract ("PSC") area in Indonesia (Fig. 1) is being submitted to the Indonesian Government for approval. The POD is based on a Best Estimate Contingent Resource of 13.7 million barrels oil in place (mmstboip) (Table 1). The represents an increase of 14% on the resource announced previously which was based on a single oil reservoir.
The objective of the POD is to bring Pendalian Field into production in 2 phases comprising 2 wells in phase 1 and full field development of 3-4 wells in phase 2. The previous plan was to start production at a likely rate of about 1,200 barrels of oil per day ("bopd") from a single well, Pendalian-3 and that first phase has now been expanded to include a second well, Pendalian-4 with a corresponding increase in the likely production rate to 1,800 - 2,000 bopd (100% basis) anticipated in Q4 2008.
Contingent Resource - Development Low Estimate Best Estimate High Estimate Pending mmstboip mmstboip mmstboip (100% basis)
Sihapas Sandstone Units D-6, C-5 5.8 13.7 29.1 Table 1 - Contingent Resource Oil in Place (100% basis) - Pendalian Field
Fig. 1 - Location map West Kampar Production Sharing Contract Area- see full report on Oilex website
As required in Indonesia, the technical studies are carried out by an independent third party appointed by the regulator (BPMigas) with input and review by personnel from the operator, PT Sumatera Persada Energi (SPE), and BPMigas. Oilex has also been participating in this process. A significant part of the geological and reservoir performance studies as part of the approval process for Pendalian Field has been concluded.
The development plan is based on results from the Pendalian-1 well drilled in 1993 and the Pendalian-3 appraisal well which was drilled, tested and suspended as a future oil production well in November 2007. Pendalian-3, which was funded by Oilex as part of the farmin arrangement with SPE, flowed oil at potentially commercial rates from two shallow zones in the Sihapas Sandstone. The likely commingled flow potential with artificial lift was estimated to be up to 1,200 barrels per day.
To date, significant conclusions arising from this independent evaluation are as follows:
* Inversion studies of the seismic data indicate that the Sihapas sands are continuous reservoirs (Fig. 2), supporting the volumetric assumptions for the Pendalian Field. * The Best Estimate Contingent Resource of oil-in-place determined by the independent third party for the two Sihapas zones is 13.7 mmstboip (gross), with a High Estimate volume of 29 mmstboip (gross). These calculated volumes are similar to those determined by both SPE and Oilex. * A staged approach to the development, with initial production from the Pendalian-3 well followed by Pendalian-4 production well, 3D seismic and full field development was recommended, subject to approval by the Indonesian Ministry of Petroleum.
Fig. 2 - Pendalian seismic inversion profile illustrating reservoir continuity - see full report on Oilex website
An evaluation of further potential in the Pendalian Field in the form ofundiscovered prospective resources at other potential reservoirs was alsopresented (Table 2).Undiscovered Prospective Low Estimate Best Estimate High Estimate Resource mmstboip mmstboip mmstboip Units B-1,2,3; C-1,2,3; E-1 14 22 33
Table 2 - Undiscovered Prospective Resource (100% basis) - Pendalian Field
Remaining POD requirements are being finalised by the third party adviser to BPMigas prior to submission to the Indonesian authorities. The recommended development schedule, subject to regulatory approval, calls for both Pendalian-3 and Pendalian-4 to be onstream in Q4 2008.
Plans are in place for the early drilling of the Pendalian-4 well and tenders have been received for conducting both 2D and 3D seismic programs in the West Kampar block in 2008. Ongoing mapping has confirmed the exploration potential of the West Kampar PSC which will be delineated by additional seismic coverage and investigated with the drilling of 3 exploration wells in a campaign scheduled to commence later this year.
Fig.3 - Top Sihapas reservoir depth map - see full report on Oilex website
Participants in the West Kampar Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (West Kampar) Limited 45% PT Sumatera Persada Energi 55% (Operator)
A glossary of terms used in the oil and gas industry and useful links to other glossaries can be found at http://www.spe.org/spe-app/spe/industry/reference/ glossary.htmhttp://www.spe.org/spe-app/spe/industry/reference/glossary.htm, the website of the Society of Petroleum Engineers.
Yours sincerely,B. H. McCarthyManaging Director
For further information, please contact:
Ray Barnes, Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)
Archie Berens, Director Pelham Public Relations Tel. +44 20 7743 6679 (United Kingdom)
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser, contact Stuart Laing +618 9480 2506
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 29years experience in petroleum geology and Ray Barnes, B.Sc. Hons. the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates ofoil-in-place arereported in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.
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