EEC unveils its Singa-1 gas flow

EEC unveils its Singa-1 gas flow

SYDNEY (Reuter): Energy Equity Corp Ltd (EEC) said yesterday the Singa-1 exploration well in South Sumatera, Indonesia, flowed gas at the rate of 30.7 million standard cubic feet per day during a production test.

"Based on these results and with more appropriately sized completion tubing installed in the well, EEC expects Singa-1 will produce in excess of 65 million (cubic feet per day) at the likely required delivery pressure," EEC managing director Maurice Brand said in a statement.

EEC holds a 20 percent stake in the concession, the Lematang South Sumatra Production Sharing Contract.

The production test, after acid treatment, was carried out on the primary objective, the Batu Raja formation limestone reef reservoir.

Brand said it was expected that negotiations would be carried out with Indonesia's national oil company, Pertamina, for an early production scheme to product Singa-1 gas into the existing local market. This would be either through the existing Harimau field 40 km away in the Lematang PSC or directly into the Pertamina pipeline some 20 km from Singa-1.

"It is possible Singa-1 could be in production within the next 12 to 18 months," Brand said.

"Preparation of a full field development plan and gas marketing arrangements for the longer term have commenced and will be undertaken concurrently with a proposed three dimensional seismic program followed by a two or three well delineation drilling program immediately thereafter," Brand said.

"Included in future exploration activity will be plans to test a 14 meter porous interval in the Gumai formation intersected during the drilling of Singa-1, which logs indicate contains gas," Brand said.

"It is also expected that a future well will drill to the deeper Talang Akar formation, the exploration potential of which has been greatly enhanced by the success of Singa-1," he said.

"The Talang Akar is the primary hydrocarbon reservoir for much of the South Sumatera region," he said.

Energy Equity is operator of the project.

Other shareholders are Amerada Hess Corp with 50 percent, Novus Petroleum Ltd with 15 percent and Eurafrep International of the Netherlands with 15 percent.