Unocal Sees Success with Gehem-2 Well Offshore Indonesia

Unocal said its Unocal Ganal, Ltd. subsidiary has drilled a successful appraisal well at the Gehem field in the Ganal production sharing-contract (PSC) area offshore East Kalimantan, Indonesia.

"The Gehem-2 well results show the primary zone of interest to have a single gas column of greater than 550 feet (168 meters)," said David Stangor, president of Unocal Indonesia. "This single zone has the potential to contain up to 1.5 trillion cubic feet of recoverable gas."

A drillstem test (DST) of Gehem-2 flowed at a daily rate of 31.3 million cubic feet of gas and 1,917 barrels of condensate. The zone was perforated from 15,362 feet (4,682 meters) to 15,523 feet (4,731 meters) true vertical depth subsea. The DST had flowing tubing pressure of 6,545 pounds per square inch on a 32/64-inch choke. The test was constrained by test equipment capacity. The oil section was not tested.

The Gehem-2 well was drilled 300 feet (91 meters) downdip of Gehem-1 and encountered 240 feet (73 meters) of net gas pay in zones penetrated by Gehem-1. Beneath those zones, 55 feet (17 meters) of net oil pay was discovered in a single zone. Gehem-2 was drilled in 6,036 feet (1,840 meters) of water to a total vertical depth of 17,505 feet (5,335 meters). The well is located 1.8 miles (2.9 km) south of the Gehem-1 well in the Ganal PSC.

The next well to be drilled in Unocal's deepwater program offshore Indonesia is a deep test on the Gula structure, a large anticline immediately south of Gehem in the Ganal PSC. Following Gula, the company plans to drill Gehem-3 in the second quarter of 2004 to appraise the northwestern flank of the Gehem structure.

Unocal Ganal is operator of the Ganal PSC area and holds an 80-percent working interest. Eni-Ganal, Limited, a subsidiary of Eni, holds the remaining 20-percent working interest.

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