Originally Posted by
BigBob
On October 29 under the heading "What Now at Kiasaran" you'll find the following update....:
New Zealand Oil & Gas took a 22.5% interest in the Central
Sumatra Basin project to diversify its portfolio with onshore
projects that, compared to our New Zealand activity, have
a higher probability of success albeit with less potential return.
The most promising zone in the Parit Minyak-2 well flowed at
a rate of 200-400 barrels a day, proving a concept developed
from an earlier, 2006, oil discovery in Parit Minyak-1.
Geologists hoped to find a substantial reservoir up-dip in PM-3.
The main target concept in that well was found, however oil
appears to have passed through the area. A secondary zone
was discovered where gas and condensate were found.
Both wells have now been suspended while reservoir
engineers analyse drill stem tests.
To understand their calculation, imagine a garden hose
draining a pool. Engineers can adjust the size of the hose and
then use changes in the rate at which fluid comes out
of it to calculate the size of the pool and how long it would
take to empty.
If commercial these models will then be used to prepare a
preliminary plan of development. The economics of different
capital configurations need to be analysed to determine the
best way to market the resource. A smaller reserve might be
trucked out, while a larger one might use nearby pipelines.
The first phase of analysis and plan of development will each
take up to six months, and then must be negotiated with the
Indonesian regulator. If a positive final investment decision
were made, achieving production would likely take a year more.
Meanwhile exploration in Sumatra is continuing for the
company to the north in the Bohorok PSC, where plans are
being made to shoot seismic in the first half of 2014.
Six months from October 29 is April 29 - do you want daily releases in the meantime to say that they are still analysing and planning....?