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.