Gulf gas reserve in RI

Gulf gas reserve in RI

CALGARY (Reuter): Gulf Canada Resources Ltd said preliminary reserve estimates from a wildcat natural gas well drilled in Indonesia are between 300 billion and 500 billion cubic feet.

Gulf chief executive J.P Bryan told an annual meeting on Wednesday that the Bungkal-1 well in South Sumatra, which was completed in March after intersecting 320 feet of net pay, had initial net gas production of 15 million cubic feet per day.

"And we think that could easily be doubled," Bryan said.

The well is in the South Jambi B production sharing contract area and eight miles northwest of Dayung, the biggest gas field being developed as part of the US$600 million Corridor Gas project.

Gulf Canada unit Asamera South Jambi Ltd has a 45 percent interest in the South Jambi B play. Other partners include Pertamina with 25 percent and Total unit, Total Oil & Gas South Jambi BV with 30 percent.

Gulf spokesman John Sparks told Reuters that the well is not part of the current Corridor development plan and may not be tied in until 2000. But it is likely to figure in future plans, Sparks said.