Loon Energy Inc. has announced that the acquisition of seismic data on a 350 square kilometer 3D survey onshore Brunei has commenced. Field work preparatory to the shooting of data including surveying, bridging and the drilling of shot holes has been underway since April.
Field acquisition operations are expected to be completed by the end of the year. A substantial amount of the data processing will occur while the shooting continues and the completion of the processing, a final interpretation of the data and a decision with respect to the drilling of the first Loon well on Block L is expected prior to the end of the second quarter of 2009.
Block L is 550,000 acres (2,253 km2) in size covering much of eastern onshore Brunei and also containing an offshore component. There has been some historic production on Block L, however, no exploration or development activities have been undertaken in this area in approximately 20 years. The giant Champion and Seria oil fields are both located within 25 kilometers of Block L and Brunei Shell Petroleum Co. Sdn Bhd announced a new gas discovery late last year at Bubut, less than 1 kilometer from the block.
A production sharing agreement on Block L, signed in August, 2006, granted Loon Brunei Limited ("Loon Brunei"), a wholly-owned subsidiary of Loon, as to 90% and QAF Sdn Bhd ("QAF") as to 10%, the rights to explore and develop the block. The 3D survey is being conducted by Nations Petroleum SE Asia Limited ("Nations SE Asia") as a part of their commitment to fund the first US $20.5 million of expenditures in the exploration of Block L in return for a 50% working interest. Accordingly, the interests of the partners in Block L are Loon Brunei 40%, Nations SE Asia 50% and QAF Brunei Sdn Bhd 10%.
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