Gulf Indonesia Makes Two Discoveries Offshore East Java

Gulf Indonesia Resources Limited announced the results of the testing of the Jenggolo-1 oil and gas discovery and Payang-1 gas discovery in the Ketapang Production Sharing Contract (PSC) area, located offshore East Java.

On the Jenggolo-1 well, a test of perforations between 6,272 and 6,300 feet flowed at a rate of approximately 3,600 barrels of oil per day through a 7/8-inch choke. Two additional tests of perforations between 5,806 and 5,854 feet and between 4,780 and 4,804 feet flowed at rates of approximately 5 million cubic feet of natural gas per day through a 1-inch choke and approximately 4 million cubic feet of natural gas per day through a 1/2-inch choke, respectively.

On the Payang-1 well, a test of perforations between 4,822 and 4,854 feet flowed at a rate of approximately 17 million cubic feet per day of natural gas through a 1-inch choke.

The Jenggolo and Payang wells were the third and fourth wells of a four well exploration drilling program for the Ketapang PSC. The first well, Bukit Panjang-1, had gas shows and minor oil shows but was not tested. As previously announced, two tests on Bukit Tua-1, the second well in the program, flowed at a combined rate of 7,250 barrels of oil per day. Two shallower zones in the Bukit Tua-1 well flowed at a cumulative rate of approximately 6 million cubic feet of natural gas per day.

"Jenggolo confirms the productivity of the Kujung zone that tested oil at Bukit Tua, 16 kilometers to the east, and the gas discovered during this drilling campaign could be sold into the growing gas market in East Java," said Cliff Zeliff, Vice President, Exploration of Gulf Indonesia. "To evaluate the areal extent and magnitude of these discoveries, the partnership is now discussing a work program that includes a 3D seismic program over Bukit Tua / Jenggolo to be followed by further appraisal drilling in 2002." Gulf Indonesia holds a 50 percent working interest in the Ketapang PSC and is contract operator for Pertamina, the Indonesian state oil company. Gulf's partner is PETRONAS Carigali Overseas Sdn Bhd, a subsidiary of Malaysian national oil and gas corporation PETRONAS, which holds the remaining 50 percent.