SundaGas continued offering a farm-in opportunity in the Telen PSC, located in deepwater Kutei Basin, in September 2019. The company is planning to drill a low-risk, high-impact exploration well in the block in 2H 2020, targeting the Hiu Marah prospect.  SundaGas is holding 100% operating interest operatorship in the block, which was acquired from Total in 2018. A high work interest and operatorship are available for potential investors to participate in the drilling of the Hiu Marah prospect.  The initial six-year exploration period for the PSC expired in October 2018. The contract has been subsequently extended into the final four-year exploration period, until October 2022. Exploration commitments for the extension are due by October 2020 (end of contract year 8) and include one exploration well and 200 km 2D seismic acquisition.  Hiu Marah is a large structural closure with estimated prospective resources (2U) of 126 MMbo and 208 Bcfg, within Middle Miocene turbidite sandstones. The prospect is considered a low-risk target due to the presence of DHIs from available 3D seismic data, as well as analogy with nearby discoveries. The target reservoir at Hiu Marah is prognosed to be found at less than 1,000 m below seabed. Despite the deepwater location (approximately 1,600 m), the well cost is projected to be relatively low, around USD 15 million.  The Hiu Marah prospect is located some 20 km east of the West Seno producing field in the Makassar Strait PSC. In case of commercial success at Hiu Marah, the existing West Seno facilities could provide a tie-back option for ready access to the East Kalimantan market, including the Bontang LNG plant.  Aside from the Hiu Marah prospect area, the PSC retains another sub-block (Area II) located further outboard, in ultra-deep water. Limited data is available for Area II to date, however internal studies by Sundagas have shown significant potential for oil generation in the area. New seismic data is planned to be acquired over Area II to identify and de-risk potential prospects.  SundaGas is a Singapore-based E&P company founded in 2016. The company is seeking low-risk exploration and development opportunities in the SE Asia region, primarily focusing on proven gas plays and discovered gas resources. The Telen PSC is the companyâs only asset to date.  In late March 2019, UK-listed Baron Oil plc reported that it was reviewing and discussing a potential investment opportunity regarding a PSC operated by SundaGas in the region. It is understood that this opportunity is likely related to the Telen PSC. SundaGas and Baron Oil entered a joint venture agreement in 2016, to explore new business opportunities in SE Asia. Discussions between the companies were still underway as of September 2019.  The farm-in opportunity for the Telen PSC was initially offered in April 2019. For further information, interested parties may contact:  Dr. Andy Butler  CEO  Email: andy.butler@sundagas.com  Background Information  The Telen PSC was officially awarded by BPMigas to Total on 9 October 2012. This was a few months after the announcement of the winning bidder on 25 May 2012. The block was offered during the First Petroleum Bidding Round 2012 under the direct offer mechanism. Firm commitments for the first three years of exploration include G&G studies (USD 2.5 million), 200 sq km 3D seismic (USD 2 million) and one well in the third exploration year (USD 40 million). Signature bonus paid was USD 1.5 million. Two bid documents were purchased for this block and there was one company who submitted a participating bid.  The deepwater block, with an initial area of 2,371 sq km split into six sub-blocks, is located in the Kutei Basin, between 1,000 and 2,000 m depth. Around 2,700 km of 2D seismic data are available for the block. The acreage has been previously covered by several contracts: the central and northeastern sub-blocks (Areas IV, V and VI) were covered by the Popodi and Donggala PSCs prior to partial relinquishments in 2007. The southwestern sub-block (Area I) corresponds to the former Saliki PSC (awarded to Total in 1997 and fully relinquished in 2009). The northwestern sub-block (Area III) was under Chevronâs Rapak PSC. Telen Area II, to the southeast, was covered by the Papalang PSC until partial relinquishments in 2004.  Portions of the Telen PSC were possibly covered by a multi-client 3D EM seismic survey conducted in 2015 by EMGS âBoa Thalassaâ M/V over the northern Kutei Basin.
SundaGas continued offering a farm-in opportunity in the Telen PSC, located in deepwater Kutei Basin, in September 2019. The company is planning to drill a low-risk, high-impact exploration well in the block in 2H 2020, targeting the Hiu Marah prospect. SundaGas is holding 100% operating interest operatorship in the block, which was acquired from Total in 2018.