Santos Plans Sidetrack Ops at AAL-4X Well in Indonesia's NW Natuna PSC

Australia's AWE Ltd. disclosed Wednesday that Santos Ltd., operator of the Northwest Natuna Production Sharing Contract (PSC) in the Natura Sea offshore Indonesia, has not been able to complete the planned drill stem tests (DST) in the K-sand and G-sand reservoirs in the current hole due to a mechanical obstruction in the well bore of the AAL-4X appraisal well in the block.

The joint venture now intends to commence sidetrack operations to allow completion of the project scope and complete the planned DSTs.

Prior to the obstruction, Santos had achieved all other objectives of the AAL-4X well, having intersected oil-bearing sands in both the primary G Sand and secondary K-sand objectives. The evaluation program has successfully acquired all planned wireline logs, pressure data and oil samples from both reservoirs and also recovered approximately 206.7 feet (63 meters) of full core across the two reservoirs.

"The data acquired to date has provided significant new information to further the development planning of the K-sand reservoir and to assist with the development potential of the G-sand reservoir," AWE said in the press release.

The G Sand reservoir is estimated to contain 289 million barrels gross oil in place with 36 million barrels gross recoverable oil and the appraisal will facilitate the preparation of a development plan for this resource, which could be developed in conjunction with the already approved K Sand development.

AWE and Santos have a 50-50 stake in the Northwest Natuna PSC.



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