Matrix To Re-Enter Langsa Well For Repairs

Matrix Oil NL has previously announced that the L1 well at its Langsa Offshore Technical Assistance Contract area in the Malacca Straits off North Sumatra had been temporarily shut down in December 2001 following the discovery of a leak of hydraulic fluid in the control line. The well was then re-opened on January 1st 2002, at a lower flow rate than its full production rate, to allow for further testing.

The well maintained a steady flow of approximately 2,500 barrels of oil per day during January 2002, with a steady leak of glycol fluid during that period that allowed the sub surface safety valve that had malfunctioned in the well to remain open. However the leak has begun to increase significantly over recent weeks, resulting in a decision to shut down the well once again.

Matrix engineers have been evaluating alternative methods available to remedy the leak. It is now evident that where the leak actually is, and with the recent increase in the leak rate, it is necessary to re-enter the well with the use of a drilling rig to repair the leak to resume full oil flow from the L1 well. Tender documents for the drilling rig and integrated operating services are shortly to be released so that this work can be completed as soon and as efficiently as possible.

The L2 well is continuing to flow at a rate of approximately 2,500 barrels of oil per day. The re-entry of the L1 well is expected to be completed within 5 months, after which the well should resume production at an expected rate of 4,000 barrels of oil per day. In addition, it is planned to re-enter the H3 well at the same time which will increase total production from the Langsa fields to approximately 9-10,000 barrels of oil per day.