SapuraKencana Discovers Gas at Bakong-1 Well in SK408 Offshore Sarawak

SapuraKencanca Petroleum Berhad's unit SapuraKencana Energy (SKE) reported Friday that it has made another gas discovery at Bakong-1, the fifth and final well in its 2014 drilling campaign within the SK408 Production Sharing Contract (PSC) area, offshore Sarawak, Malaysia.

Bakong-1 is a significant discovery with a gross gas column in excess of 1,968 feet (600 meters) in the primary target reservoir located within Late Miocene Carbonates. This discovery augments the earlier announced 4 well discoveries, which completes the 5 well drilling program slated for this year as part of the SK408 work campaign. The previous 4 wells, namely Teja-1 (gross gas column of 718 feet or 219 meters), Gorek-1 (gross gas column of 770 feet or 235 meters), Legundi-1 (gross gas column of 456 feet or 139 meters) and Larak-1 (gross gas column of 1, 092 feet or 333 meters) also discovered non-associated natural gas within the same Late Miocene Carbonate reservoirs. The 5 discoveries to date have found in excess of 3 trillion standard cubic feet (Tscf) of gas in-place.

In line with the SK408 partnership philosophy of fast track, low-cost development, all 5 discovery wells have been suspended with the intention of completing as gas production wells in the future.

“The drilling campaign for SK408 this year has been well executed and completed safely by the SKE team and has yielded exceptional results. This last well ranks as one of the larger discoveries in Malaysia this year and has doubled the resources found in the block to-date,” said Shahril Shamsuddin, president & Group CEO of SapuraKencana Petroleum Berhad.

A further 5-well exploration campaign in 2015 will target additional gas prospects with significant potential and complete the exploration commitment in the SK408 Block.

SKE via SapuraKencana Energy Sarawak Inc. is the operator with a (40 percent) working interest with partners PETRONAS Carigali Sdn. Bhd. (30 percent) and Sarawak Shell Bhd. (30 percent) holding the remaining interest. SK408 Block is located in shallow waters, approximately 74 miles (120 kilometrers) offshore Sarawak covering an area of approximately 1,729 square miles (4,480 square kilometers) in the prolific Central Luconia Gas Province.


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