Energy Equity Corp to help fund Singa exploration<\/p>\n
SYDNEY (Reuter): Energy Equity Corp Ltd said yesterday it has
\nsigned a farm-out option agreement with Novus Petroleum Ltd to
\nhelp fund the Singa exploratory well in South Sumatra, Indonesia,
\nin return for an option to take up 15 percent of the Lematang
\nproduction sharing contract.<\/p>\n
The deal is similar in terms to agreements reached in 1995
\nwith Amerada Hess Corp and Coparex International SA, which
\ntogether will fully fund expected dry hole costs of between US$8
\nmillion and $9 million, Energy Equity said.<\/p>\n
Under the terms of its agreement, Energy Equity said it will
\nretain operator status on drilling and a 20 percent interest in
\nthe well.<\/p>\n
The Singa-1 well will commence drilling in late 1996 as a 400-
\nmetre test for hydrocarbons in the Batu Raja and Talang Akar
\nzones, Energy Equity said.<\/p>\n
\"These zones are proven reservoirs and are prolific producers
\nfrom numerous fields in the South Sumatra basin,\" the company
\nsaid.<\/p>\n
The Singa prospect could contain up to three TCF of natural
\ngas, as well as potential for associated natural gas liquids,
\nEnergy Equity said.<\/p>\n
The prospect is located within 40km of a planned gas
\ntransmission line from South Sumatra to West Java, which would
\nprovide access to a high-growth and high-price gas market, the
\ncompany said.<\/p>\n
Energy Equity also said it will retain its 100 percent
\ninterest in the producing Harimau field located within the
\nLematang acreage, subject to an option for the farm-in parties to
\npurchase a share in the field at an agreed price.<\/p>\n
Upon completion of the well, subject to approval by the state
\noil company Pertamina and the exercise of options to farm-in by
\nall parties, Amerada Hess will hold a 50 percent interest, Novus
\n15 percent, Coparex 15 percent and Energy Equity 20 percent, the
\ncompany said.<\/p>\n
In this case, Amerada Hess may elect to assume operatorship of
\nthe well, Energy Equity said.<\/p>\n
Production to date from fields in the South Sumatra basin is
\nin excess of 7.1 billion barrels of oil, as well as gas
\nproduction at current rates over 225 million standard cubic feet
\nper day, the company said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/energy-equity-corp-to-help-fund-singa-exploration-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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