Santos tests well off Java

Santos tests well off Java

CANBERRA (Dow Jones): Australian energy company Santos Ltd. (Stosy) Tuesday said the first of two drill stem tests in the Oyong-1 well offshore East Java flowed oil and natural gas.

Santos is the operator and holds a 45 percent stake in the well, while Cue Energy Resources Ltd. has a 15 percent stake and Coastal Indonesia Sampang Ltd. has the 40 percent balance.

Testing encountered a 110 meter natural gas column between 813 meters and 923 meters and a 35 meter oil column between 923 meters and 958 meters.

Between 927 meters and 931 meters, the well flowed 762 barrels of oil a day and 1.22 million cubic meters a day through a 9.5 millimeter choke, Santos said in a statement.

Santos previously reported only a possible 22 meter gross oil column and a 110 meter gross oil column in the well.

It still has another drill stem test to perform on the well, located 80 kilometers east of Surabaya in East Java.

Santos lost 1 cent to close at A$6.43 Tuesday, while Cue Energy Resources added 1.1 cents or 19 percent to close at 6.8 cents.