This decision follows analysis of data from the open-hole Drill Stem Test (DST) 3 conducted during the past week and mechanical well bore difficulties.
Transocean's Sedco 601 will now move to drill the Agung 1 well in the North Bali 1 Production Sharing Contract (PSC) offshore Indonesia.
Examination of data obtained during the test confirmed that a mixture of fluids containing oil flowed to the surface during the initial flow from DST 3. The fluid mixture flowed at an unstabilized rate as part of the initial "clean-up" flow. The oil has an estimated gravity of 33o API, the same as oil recovered from earlier DSTs in the Jeruk field.
The open-hole DST 3 commenced on 9 January 2005 and was performed over a 30 meter interval from 5,430m to 5,460m measured depth. During the initial part of the DST the test tools became plugged with well debris preventing further flow. A stable flow rate could not be established. Several attempts were made to clear the plugged test string. However, it became impractical to continue testing operations and the well will now be suspended.
The results from DST 3 indicate that oil is present in the Jeruk field down to at least 5,460m measured depth. Analysis of data following completion of the test indicates that the oil tested in Jeruk 2 DST 3 is part of the same hydrocarbon column as that tested in Jeruk 2 DST 1 over the interval 5,134m to 5,152m in the Jeruk 2/ST2 (Side Track) well bore.
A hydrocarbon column of at least 379m has therefore been encountered in the Jeruk field indicating likely recoverable reserves in excess of the pre-drill estimate of 170 million barrels.
"The results of Jeruk 2 are very encouraging. We are currently integrating all data into a final evaluation of the well which will help us narrow a likely reserve range for the field," Santos' Managing Director, Mr. John Ellice-Flint, said today.
Jeruk 2 was drilled to follow up the Jeruk 1 well, which finished drilling in early April 2004 about 1.6 kilometers west of Jeruk 2. The well is in the Sampang PSC area in water depth of 44 meters and it is located approximately 42 kilometers from the Indonesian city of Surabaya.
A 3D seismic survey is currently being conducted in the Sampang PSC which will extend over the Jeruk field area. Following the 3D seismic survey the program to appraise the field more fully will be developed.
Interests in the Jeruk field are Santos as operator with 50% and PT Medco Sampang with the other 50%.
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