Santos Successfully Drills the AAL-4XST1 Appraisal Well in the Natuna Sea

Australia's Santos Ltd., operator of the Northwest Natuna Production Sharing Contract (PSC) in the Natuna Sea offshore Indonesia, achieved excellent flow rates in the drilling of the AAL-4XST1 appraisal well for the Ande Ande Lumut (AAL) oil project, joint venture partner AWE Ltd. reported Tuesday.

The operator conducted a successful Drill Stem Test (DST) on the G Sand reservoir at the AAL-4XST1 appraisal well using the Raniworo (345' ILC) and achieved an averaged stabilized flow rate of 828 barrels of oil per day (bopd) on a 64/64 inch choke over a 9 hour period. The results exceeded pre-drill expectations and are 58 percent higher than the previous G-sand tests at AAL-3X (525 bopd).

Wellsite measurements indicate the G-sand oil has a specific gravity of 10.7 API at 60 degree Fahrenheit, consistent with previous samples from AAL-3X. AWE’s preliminary analysis of the wireline log data indicates a 26 foot (8 meter) oil column in the G-Sand and excellent quality reservoir -- the best encountered in the field to date. No oil-water-contact was intersected in the well. Santos is now planning to commence a second DST test in the main AAL field K-sand reservoir.

“The better than expected flow rates achieved and excellent reservoir quality underline the significant potential of the AAL oil project. The positive results of the G-sand DST, together with a forecast lower cost environment and an improving long-term outlook for the oil price are all encouraging in respect of a decision to develop the AAL field,” AWE Managing Director and CEO, David Biggs, said in the press release.

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

Santos and AWE each hold 50 percent interest in the Northwest Natuna PSC.



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