Unocal finds RI oil reserve

Unocal finds RI oil reserve

HONG KONG (Dow Jones): Unocal Corp. (UCL) said it has
discovered a new oil-bearing reservoir in offshore Indonesian
waters.

A well in the deepwater Merah Besar, in Unocal's East
Kalimantan production sharing contract (PSC) area, established
the presence of oil at shallow depths, the company said in a
statement Monday.

The company said it also plans seven to nine additional wells
in the next two months to evaluate further the deepwater
resources.

The well was the fifth exploration/extension well drilled on
the Merah Besar complex in 39 days, for an average cost of under
$1.5 million each.

Based on the latest drilling information, the estimated gross
resource potential for Merah Besar, excluding the new find, is
between 90 and 250 million barrels-of-oil-equivalent.

The Merah Besar area is located on the East Kalimantan PSC and
northern portion of the Makassar Strait PSC.