LL&E stablizes at flow rate of 4,500 bpd

LL&E stablizes at flow rate of 4,500 bpd

NEW ORLEANS (Reuter): Louisiana Land and Exploration Co said Monday production from the Nelayan-1 discovery well in the KAKAP Production Sharing Contract, offshore Indonesia, has stabilized at a flow rate of about 4,500 barrels of oil per day.

LL&E owns a 15 percent working interest in the KAKAP contract, which is operated by Gulf Canada Resources Ltd. Gulf has a 31.25 percent interest, NOVUS has 25 percent, Premier Kakap 18.75 percent and Indonesian state oil firm Pertamina 10 percent.

LL&E said the Nelayan-1 was directionally drilled from the existing KG Platform to a depth of 3,625 meters (11,900 feet) and began production in early May. This well encountered about 70 meters (230 feet) of net oil pay with good reservoir quality in several stacked oil-bearing sands, it said.

LL&E said the well also confirmed excellent follow-up potential in the Nelayan structure and in similar structures along the KAKAP wrench fault trend. Three additional exploratory wells along the wrench fault are planned for drilling at KAKAP later this year.

It also said the KR-1 well at the KR Field, one of three fields discovered in 1995 that are being tied back to existing production facilities via subsea completions, recently went on production at an initial rate of 3,000 barrels of oil per day.

The other two new fields, KRN and KG5, are expected to be placed on production by the end of May.