Santos Confirms Gas Reserves with Maleo-2 Well

Santos has conducted a successful flow-test of the Maleo-2 gas appraisal well located south east of Madura Island, East Java, Indonesia. The well flowed at 30.2 million cubic feet of gas per day. The result confirms the resource potential of the field as 250 to 400 billion cubic feet of gas.

The Maleo gas field, which was discovered by Santos in June this year, is located in shallow waters 140 kilometers east of the city of Surabaya in the East Java region of Indonesia.

"This is a good result, which confirms the resource potential of the block", Santos' Managing Director Mr. John Ellice-Flint said. "Maleo-2's flow-rate is higher than expected, indicating excellent reservoir quality. As the Maleo field is only seven kilometers from the main Pagerungan gas pipeline to Surabaya it is well placed to contribute towards the significant energy needs in East Java. It also provides another important lever to grow our petroleum business in Indonesia."

Other Santos-operated projects in the region include the Oyong gas and oil discovery, 70 kilometers west of Maleo, and the Bentu gas project onshore Sumatra.

Santos (Madura Offshore) Pty Ltd, has now completed wire-line logging operations on Maleo-2 and has commenced a period of well testing. Located three kilometers northwest of Maleo-1, Maleo-2 encountered a 25.8 meter gross gas column (25.8 meters net) between 581.2 meters and 607 meters in the Early Pliocene Mundu Formation limestone.

The well was cased and perforated between the interval of 583 meters and 593 meters. The final measured flow rate was 30.2 million cubic feet per day through a 2-inch choke at a wellhead tubing pressure of 3061 kilopascals (444 pounds per square inch). The reservoir is well developed with high quality sales gas with negligible CO2 content.

Drilling of the Maleo-2 appraisal well followed the Maleo-1 gas discovery in June 2002. Santos farmed into the Madura Offshore PSC following the Oyong gas and oil discovery made in the adjoining Sampang PSC in August 2001.

Participants in the Madura Offshore PSC are: Santos (Madura Offshore) Pty Ltd 75% (Operator); Talisman (Madura) Ltd 25%.