ARCO Announces Additional Exploration Success in Indonesia; More Gas for Tangguh LNG Project

abarrelfullabarrelfull wrote on 07 Aug 2012 07:16
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17 December 1997

ARCO (NYSE: ARC) today announced the results of another successful exploration well, Ubadari #1, on a separate structure 30 miles southwest of previous ARCO discoveries offshore Irian Jaya in eastern Indonesia. The well, located in 63 feet of water in Berau Bay, flowed at a combined rate of 45 million standard cubic feet per day (mmscfd) from four drill stem tests in Jurassic and Paleocene age sandstone formations.

The well produced from the same geologic formations that produced a series of exploration successes in eastern Indonesia for ARCO and its co-venturers in the Berau and Wiriagar production sharing contracts (PSCs). Leon Codron, President of Atlantic Richfield Indonesia Inc., stated: "The results of Ubadari #1 accentuate the fact that we are developing the next great gas basin for Indonesia. The year is ending as it began for us in eastern Indonesia, with a significant new discovery. "This string of successful exploration wells, in conjunction with a recently-executed collaboration agreement with BG plc, operator of the Muturi PSC just north of the Berau and Wiriagar PSCs, continues to add gas to the reserves base that will support the Tangguh liquefied natural gas project," Codron said. "With continued success in the region, the Tangguh base of proved and probable reserves will approach the level of Indonesia's giant Arun field. Last September, ARCO and its partners confirmed discovery of at least 13 trillion cubic feet of proved and probable reserves in support of the Tangguh LNG project. "Tangguh will become the next new multi-train LNG center for Indonesia. It will enable Pertamina, the state national oil and gas company, to extend and expand its premier position and market share in the Asian LNG trade. Because natural gas is an environmentally preferred fuel, the rate of growth in LNG demand is expected to outpace competing fuels in the region." Codron said there is an ongoing program to certify more reserves in the Tangguh area.

"We expect the next DeGolyer & MacNaughton certification in July 1998 to include reserves from the Ubadari gas field and previous discoveries." Participants in the Berau block are ARCO (48%), Occidental Berau of Indonesia, Inc. (22.856%), Nippon Oil Exploration (Berau) Ltd. (17.144%) and KG Berau Petroleum, Ltd. (12%). Participants in the Wiriagar block are ARCO (80%) and KG Wiriagar Petroleum Ltd. (20%). Participants in the Muturi block are British Gas Exploration and Production, Ltd. (50%), Cairns (45%) and PT Saptapetra Wisesa (5%).


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