Lundin Continues Indonesian Exploration Program

Lundin Petroleum provides an update on its operations in Indonesia:

  • The exploration well (Padi-1) in the Blora Block, Indonesia has spudded. The main target of the well is the Oligocene Sandstone formation, a well known and proven reservoir in the area. The drilling operations will be completed in the fourth quarter and the total depth is expected to be 1 235 meters.
  • Under a farm-in agreement reached with Kuwait Foreign Petroleum Exploration Company ("Kufpec") Lundin Petroleum is transferring a 40% working interest in the Blora block to a Kufpec subsidiary. As part of the agreement Kufpec has agreed to fund a percentage of Lundin Petroleum's Padi-1 well costs. Following the farm-in and subject to all necessary government and partner approvals, Lundin Petroleum will hold a 43.3% working interest and CNOOC will continue to hold 16.7%.
  • The exploration well "Banteng-1" located on the Lematang block has reached its main reservoir objective (the Gumai Sands Formation) at a depth of 3 227 meters. Logs were acquired and did identify a thin hydrocarbon gas column at the Gumai sands level. Log analysis however showed that the prospective reservoir section was thinner than anticipated and the well has been declared non commercial.

  • Currently, the well is being plugged and abandoned. Partners in the joint venture are PT Medco Energi 74.12% (the Operator), Lundin Petroleum 15.88% and PDA 10%.