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Canadian company announces gas find in South Sumatra

| Source: DJ

Canadian company announces gas find in South Sumatra

CALGARY, Canada (Dow Jones): Gulf Indonesia Resources Ltd. said it and its partners encountered "record gas flow" from the second test of the Durian Mabok 2 well in South Sumatra, Indonesia.

In a press release, the company said its partners are Talisman Energy Inc. and Pertamina.

It said this well tested a 155-metre basal Tertiary limestone area through three sets of perforations between 2,121 and 2,203 meters and flowed 58 million cubic feet of natural gas a day with about 370 barrels of condensate a day at 2,900 pounds a square inch flowing tubing pressure through a one-inch choke. It said this flow rate was restricted by the capability of the test equipment.

It said the previous test of the lower section, a 144-meter, open-hole interval within fractured pre-Tertiary granites above 2,517 meters, was flow-tested through a 60/64-inch choke at a rate of 26 mmcf/d of natural gas with about 139 b/d of condensate.

As was the case in the first test, the company said the gas in the upper section contained low levels of carbon dioxide similar to the 5.5 percent encountered in the Suban 2 and Suban 3 wells, "significant in that very little processing will be required to meet the sales gas specification of 5 percent carbon dioxide."

It said the Durian Mabok 2 wildcat well was drilled on a previously untested structure eight kilometers from the successful Suban 3 delineation well announced in March and 7.5 km from the Suban 2 exploration discovery announced in January.

The company said data from the first test, combined with seismic mapping, suggest that all three wells have penetrated a single gas pool which has a minimum gas column of 500 meters and covers an area of at least 72 square km. The company said the base of the gas pool hasn't been encountered in any of the three wells.

Gulf Indonesia said acquisition of a 3D seismic survey over the field is planned to start in mid-August. Drilling of additional wells to further delineate the field will follow seismic interpretations, it said.

The company said the Suban field is about 64 km southwest of the existing gas and oil infrastructure at the Corridor Project central gas plant at Grissik and 20 km southwest of the Dayung field that currently supplies gas to the Corridor Project.

It said gas reserves at Suban will be available to supply future expansions of the Corridor Project as well as additional domestic and international gas marketing opportunities.

Gulf Indonesia holds a 54 percent working interest in the Corridor Block Production Sharing Contract and is contract operator for Pertamina, the Indonesian state oil company. Gulf Indonesia is 72 percent-owned by Gulf Canada Resources Ltd. Talisman has a 36 percent interest and Pertamina has 10 percent.

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