LOI for Vital in Sumatra
Vital Resources has reached a Letter of Intent agreement to purchase the Ramok and Senabing Oil Fields Technical Assistance Contract located on the island of Sumatra, Indonesia. The purchase price is US $13.6 million, with a cash and stock component, for the acquisition of 100 per cent of the privately owned companies, which wholly own the Ramok and Senabing Oil Fields TAC.
History of Ramok and Senabing Fields
According to historical records, the Dutch (BPM) discovered Ramok and Senabing oil fields in the early 1900s. These discoveries were carried out by field mapping of river traverses and generating surface geological maps. The presence of oil and gas seeps in the area were well known at the time.
In the ensuing decades the two fields were developed with numerous wells on close spacing. The Ramok field had a total of 51 wells drilled from 1910 to 1942. This development resulted in a peak production of 280,000 bbls/year, with an aggregated peak daily production of 900 bbls/day. The field was still producing in 1942, but was abandoned due to the invasion during WW II.
The Senabing field had a total of 41 wells drilled from 1906 to 1931. This development resulted in a peak production of 180,000 bbls/year in 1907, with an aggregated peak daily production of 600 bbls/day.
After nearly 60 years during which no efforts were made to re-establish production, exploration was resumed in 1979 and 1988. PERTAMINA conducted gravity and seismic surveys, along with geological mapping over the two fields. PT RADIANT RAMOK SENABING et al initiated development drilling in 1996, with the drilling of four wells. Commercial production was finally restored to Senabing in 2001 and Ramok in 2005. Total current production is approximately 85 bbls/day, which is primarily from Senabing field, only due to well count.
Geological & Reservoir Discussion
Ramok and Senabing oil fields are located in the Sub Basin West of Palembang, South Sumatra. These oil fields are anticline structures consisting of sandstone reservoirs, with significant faulting. The Ramok and Senabing fields have two productive horizons, the Muara Enim (MEF) and Air Benakat formations (ABF). Whereby, the Senabing field has a majority of the productive zones in the Air Benakat formation.
The average drilling depth for Ramok's deepest proven productive horizon is approximately 3,700 feet (1,200 meters). Whereas Ramok's primary productive interval resides, on average, at approximately 2,000 feet (650 meters). The Senabing Field's deepest proven productive horizon is, on average, approximately 1,800 feet (600 meters). Numerous deeper horizons up to 9,800 feet (3,000 meters) exist below the above captioned production zones in both fields; offsetting analogous fields have proven production in these deeper horizons.
Vital's team is currently developing an enhanced oil recovery and depletion strategy (waterflood) for the Ramok and Senabing oil fields, which will be outlined shortly. There are also strong indications that significant undeveloped reserves exist within these fields, complementing the existing reserves, as well as potential further field extensions.
Vital Resources is a Calgary-based international junior oil and gas exploration company, which is continuing to review oil and gas opportunities.
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Company: Vital Resources Corp. more info
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