Santos' Recent Find Could Hold 450bcf of Natural Gas

Santos said that the Maleo 1 exploration well offshore Indonesia has been successfully flow tested. Resource potential is assessed as being within the range 200 to 450 billion cubic feet. A flow test of the well has produced at a final measured rate of 13.5 million cubic feet per day through a 80/64th inch choke at a well head tubing pressure of 416 psi. The test was conducted over the interval 562-590 meters. Some analysts had estimated the well might contain 350 billion cubic feet of gas and could add about A$1 to the Santos share price if its high impact potential is realized. The well is located in the Madura Offshore permit southeast of Madura Island, East Java. Santos is operator of the permit and has a 75% stake. The remainder is held by Talisman (Madura) Ltd. The Maleo discovery is well situated, approximately 4 miles from existing gas pipeline infrastructure supplying Surabaya, enhancing the chances of commerciality.