Well AAL-2X-R began its drilling activities on September 24, 2006 and reached a total depth of 1,356 meters on October 4, 2006. AAL-2X-R is located at the southern edge of the Ande Ande Lumut Oil Discovery. A 44m thick K Sand with excellent reservoir characteristics held a 9m oil column and this has defined the southern edge of oil in this reservoir.
Well AAL-3X began its drilling activities on October 20, 2006 and reached a total depth of 1,290 meters on November 3, 2006. AAL-3X is located in the center of the Ande Ande Lumut Oil Discovery, about three kilometers north of AAL-2X-R. Both wells intersected several oil-bearing sandstones.
A major testing program was then undertaken on two of these sandstone reservoirs in order to flow oil to surface. The first flow test of an 8-meter sandstone reservoir produced oil at a restricted flow rate of 525 barrels of oil per day ("bopd"). The second flow test was performed across the upper part of a 19-meter thick oil column located within a 36-meter thick K Sand and this produced oil at a restricted flow rate of 1,210 bopd.
"The results of these wells are extremely encouraging, such that the work will now begin on determining the oil reserves of the Ande Ande Lumut and Anambas and how best to rapidly develop this oil in cooperation with BPMIGAS. Once this work is completed, a Plan of Development will be submitted to BPMIGAS," said Mr. TS Ong, Chief Executive Officer of Genting Oil & Gas Limited, which owns 100% interest in GONPL.
"GONPL's progress work has been impressive, having fully completed a 3D seismic survey and drilling of two offshore exploration wells within the first 2 years of the PSC term, despite a 3-year work commitment of 3D seismic and to drill one well. We are very pleased that our Oil & Gas Division's first three 100%-owned and operated exploration wells in Indonesia were drilled successfully and that all three wells revealed potentially good hydrocarbon reserves. These are very positive developments for our Oil & Gas Division," he added.
Genting's Oil & Gas Division has now completed a three-well offshore exploration drilling program in the West Natuna area of Indonesia. The first well, named 'Anambas-1X' on the Anambas PSC (located 90km to the south of Northwest Natuna), was announced as a gas and condensate discovery on September 25, 2006. In addition to developing the Ande Ande Lumut oil and the Anambas gas and condensate discoveries, the Division will continue to study the potential of several other prospects within these Northwest Natuna and Anambas PSC Blocks.
In Indonesia, the Genting Oil and Gas division has interests in three Production Sharing Contracts which were signed with BPMIGAS, namely the Anambas PSC (100%), the Northwest Natuna PSC (100%) and the West Salawati PSC (49.99%). BPMIGAS is the Indonesian agency responsible for supervising upstream oil and gas activities.
The Anambas and Northwest Natuna PSCs have a three- year work commitment of 3D seismic, to be followed by the drilling of exploration wells. The Anambas and Northwest Natuna PSCs were acquired in June and December 2004 respectively. Both blocks are in the West Natuna Sea and are adjacent to the maritime boundary of Peninsular Malaysia. A 49.99% non-operated interest in the West Salawati PSC was acquired in January 2005. This block includes onshore areas of Salawati Island and offshore areas of the Seram Sea and Sele Straits. Exploration drilling onshore Salawati Island is planned for later this year.
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