Australia's Peak Oil and Gas (Peak) reported Tuesday that its majority controlled firm, Renco Elang Energy Pte Ltd (REE), the Operator of the North Sumatra South Block A (SBA) Production Sharing Contract (PSC) in Indonesia with a 51 percent working interest (Peak earning net 38.25 percent), has completed a seismic survey over the PSC.
Peak, through REE, together with seismic contractor, Quest Geophysical Company, and with the assistance of our Joint Venture Partner KRX (a wholly owned subsidiary of Lion Energy Ltd), has completed seismic recording operations acquiring 113 miles (183 kilometers) of 2D seismic. During the survey an extra three lines were acquired over the shallow Paya Bili lead due to positive results from the initial seismic. In completing the seismic survey we logged around 1.2 million man hours incurring only one, relatively minor, Lost Time Injury (LTI).
Data on field and brute stacks is of good quality and processing is proceeding at “Mega Energy Processindo” (MEP), an experienced processing company based in Jakarta.
Drilling prospects will be matured following receipt of final processed data, with a drilling location to be selected in the near term to target an attractive shallow oil prospect for drilling later this year, to be followed in 2015 by a deeper, wet gas, drill target. Early planning for 2014 drilling is underway and an operational schedule will be finalized over the next few months.
High Quality Live Oil Encountered in Hand Drilled Shallow Wells on Flank of Simpang Lead
During seismic line clearing operations over the Simpang lead, high quality, live oil was sampled from shallow wells, hand drilled by locals and producing around 100L (3-4 Jerry Cans) per day. A similar occurrence was also encountered at Alur Sentang, to the north of the Paya-Bili lead. Samples of the oil being produced were obtained and analysed indicating very high quality oil.
The Simpang oil sample is described as low viscosity, brownish black liquid, smelling like a mixture of diesel and petrol. The gas chromatography (GC) profile is characterized by suites of normal paraffin’s ranging from nC5 to nC25+. There is a relatively low abundance of waxy components (>nC25) and no evidence of biodegradation. The GC fingerprint profile is consistent with the existence of light oil, confirmed by analysis as a 50 degree API light, high quality oil.
These shallow oil shows validate the presence of a very active petroleum system in the immediate locality, close to SBA Leads, and supports the oil potential in the block.
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