|Tuesday, November 09, 1999
Unocal Corporation reports that oil and gas has been discovered in the Bangka and Aton prospects in the Rapak Production Sharing Contract (PSC) area. These discoveries further confirm that the company's Kutei Basin deepwater properties offshore Indonesia have significant hydrocarbon resource potential. The Bangka discovery is located 9 miles north of the West Seno field. The Bangka #2 well was drilled to a depth of 9,752 feet in 3,191 feet of water and encountered 367 net feet of liquid-rich gas pay in the upper Miocene. The Bangka #5 well, located 3.5 miles northwest of the Bangka #2 well, is currently being drilled. The Aton discovery is located 5 miles southeast of the Bangka #2 well. The Aton #3 well was drilled to a depth of 8,465 feet in 3,826 feet of water and encountered 255 feet of high quality reservoir and 80 feet of oil and gas pay. A follow-up well, the Aton #1, was drilled to a depth of 12,465 feet in 3,644 feet of water. "The Bangka and Aton discoveries are the result of the integration of the data from earlier wells and attest to the evolving understanding of the deepwater exploration play," said Brian W. G. Marcotte, president and general manager of Unocal Indonesia Company. "We think we have found an important key for exploring in the Upper Miocene, and we are much more confident in our ability to predict the occurrence of significant sand accumulation in the area." Marcotte noted that an additional 300 square miles of new 3D seismic data will be available before the end of the year. Unocal has now made 5 deepwater Upper-Miocene oil and gas discoveries offshore Indonesia since beginning its exploration program in 1998. Two of the discoveries, Merah Besar and West Seno, have received approval from Pertamina for Plans of Development. The commercial potential of the other three discoveries -- Janaka North, Bangka and Aton -- is under evaluation, with further drilling planned for all three discoveries. Unocal has drilled 12 deepwater wells in the Kutei Basin since June. Those 12 wells were drilled for an average cost of $4.6 million, with an average drilling time of 14.2 days. Looking forward, Unocal plans to proceed with its Indonesia deepwater exploration program on two fronts. In addition to the current well on the Bangka prospect, additional wells are planned for the Janaka North and Nakula prospects before the end of the year. In January, two to four Middle Miocene tests will be drilled on large anticlines in the Ganal PSC, south of the Makassar productive trend. Unocal, through various subsidiaries, is operator of the East Kalimantan, Ganal, Sesulu, Rapak and Makassar Strait PSC areas. The company holds working interests of 100 percent in East Kalimantan, 80 percent in Ganal and Sesulu (Lasmo 20%), 60 percent in Rapak (Mobil 30%; Lasmo 10%) and 50 percent in Makassar Strait (Mobil 50%).