Gulf Indonesia Updates Exploration Activity

Gulf Indonesia's "big-hit" offshore oil exploration program continued in the second quarter of 2001, resulting in two more discoveries in the Ketapang PSC area, located offshore East Java, following on the heels of the Bukit Tua oil and gas discovery in the first quarter.

The Jenggolo-1 well flowed at a rate of approximately 3,600 barrels per day (b/d) of oil from the Kujung III carbonates, which is the same formation that tested a combined 7,250 b/d at Bukit Tua-1, 12 miles to the east.

Post-drilling seismic mapping suggests that these two wells have tested different positions on the same structure. Two additional tests of shallower zones in Jenggolo-1 flowed at a combined rate of approximately 9 mmcf/d of natural gas. On the Payang-1 well, a test of the Kujung I carbonates flowed at a rate of approximately 17 mmcf/d of natural gas through a 1-inch choke.

To evaluate the real extent and magnitude of the discoveries in the Ketapang PSC, a 3D seismic program over the greater Bukit Tua / Jenggolo area is being proposed for later in 2001 to be followed by further appraisal drilling in 2002.