Santa Fe details Jabung output

Santa Fe details Jabung output

HOUSTON (Reuter): Santa Fe Energy Resources Inc said yesterday
oil production has started at the North Geragai field, the first
of three discoveries made on the Jabung Block on the island of
Sumatra, Indonesia.

It also said commerciality of the Makmur Field has been
demonstrated by a delineation well, adding the owners expect to
begin production there in the second quarter of 1998.

"Our 1997 seismic program has identified structures in the
Jabung Block similar to North Geragai and Makmur which will be
drilled and tested within the next twelve months," Santa Fe said
in a statement.

Santa Fe holds a 30 percent participating interest in the
Jabung area, as do Kerr-McGee Corp and Amerada Hess. The
remaining 10 percent is held by Pertamina.

Santa Fe said the field is expected to reach gross production
of 5,000 barrels of oil per day by the end of August with
production rates of 8,700 barrels per day anticipated in the
fourth quarter of 1997.

Field appraisal, development and facilities construction were
completed within two and one-half years of the initial discovery,
the company pointed out.

Also on the Jabung Block, the Makmur No. 2 delineation well
tested 2,950 barrels of 48 degree gravity oil per day with a
flowing tubing pressure of 511 pounds per square inch on a 48/64
inch choke. The Makmur No. 1 discovery announced in December 1996
tested 2,958 barrels of oil per day from the equivalent geologic
interval, plus 772 barrels of oil per day from two other zones.

Santa Fe noted the Makmur discovery tested a separate geologic
feature to the south of the N. Geragai field. The owners intend
to submit a Plan of Development to the Indonesian government in
the near future, it added.

Santa Fe also reported delineation drilling on the east side
of the geologic structure at the Mudi Field on the island of
Java.

It said the Mudi No. 6 tested 7,040 barrels of 35 degree
gravity oil per day , the Mudi No. 7 flowed 5,100 barrels of oil
per day and Mudi No. 8 tested 2,600 barrels of oil per day. With
eight wells have been successfully tested, the completion program
is ongoing and production is expected to start by the end of the
year.

The Mudi field in the Tuban Block is operated through a Joint
Operating Body comprised of Pertamina and Santa Fe Energy.

Ownership positions in the block include Pertamina 50 percent,
while Santa Fe Energy, Total SA, Risjad Salim Resources Petroleum
(Tuban) Ltd and Texas Utilities Co's have 12.5 percent each.