KrisEnergy continued offering a farm-in opportunity in the Udan Emas PSC, onshore West Papua, in April 2018. The block covers an area of 4,045 sq km following partial relinquishments approved in February 2016.  The company is offering up to 49% interest in the block, in return for pro-rata share of back costs and for full carry on a discretionary exploration well to be drilled by 2020. KrisEnergy holds 100% operating interest in the block.   The Udan Emas PSC is estimated to hold nearly 4.9 Tcfg in place, with several large structures identified and potential play type analogue to BPâs Tangguh project and Genting Oilâs Kasuri PSC. Additional resources potential of approximately 4 Tcf of gas has also been identified in potential leads along the fold belt areas, with little or no seismic coverage.    The firm exploration commitments for the first three-year exploration period have been fulfilled after the completion of a 300 km 2D seismic survey in June 2015. Aside from the newly acquired seismic data, the operator also completed a 12,210 sq km airborne gravity and magnetic survey in late April 2015.  The Udan Emas block straddles the Bintuni Basin and the Lengguru Fold Belt. Typical exploration targets in the Bintuni Basin are Jurassic sandstones of the Roabiba Formation. The basin is gas-prone, as proven by the Tangguh LNG complex operated by BP. Hydrocarbons are likely sourced from Permian-Jurassic carbonaceous shales and coals.  The block was officially awarded to KrisEnergy on 20 July 2012. Firm commitments for the first three years of exploration include G&G studies (USD 600,000) and 250 km 2D seismic (USD 5 million). The block also has a one-well commitment for the fourth exploration year. Signature bonus paid was USD 1 million. The block was offered during the First Petroleum Bidding Round 2012 under the Direct Offer mechanism. Two bid documents were purchased for this block and there was one company who submitted a participating bid. Preliminary announcement of the winner for the block was made by Migas on 25 May 2012.  The Udan Emas 2D seismic survey covered areas within the Teluk Arguni and Arguni Bawah districts of the Kaimana Regency. PSDM processing of the data was completed in Q4 2015. KrisEnergy reported seismic acquisition cost of over USD 20 million.  Initial plan for the seismic survey was in December 2013, but it did not push through. According to local press report, qualification tender process commenced in early September 2013.  The farm-in opportunity was previously offered in August 2015, aiming at finding new partners to fund future exploration program in the PSC.  For further information, interested parties may contact:  Mike Whibley  Vice President, Technical  mike.whibley@krisenergy.com  Dr. Gadjah E. Pireno  Vice President, Exploration and New Ventures  Gadjah.pireno@krisenergy.com  Background Information  The northeastern part of the Udan Emas block covered the area that used to be covered by the Arguni East PSC. The eastern part of the block used to be covered by the West Lengguru PSC and the Bintuni PSC. The western part of the block used to be covered by Bomberai PSC and Babo PSC. The main exploration target in the Bintuni Basin is the Jurassic Roabiba sandstone play. In the nearby Kasuri PSC, Genting drilled the Asap 1XST1 gas with condensate discovery from 2010 to early 2011. Three DSTs were conducted in Roabiba sandstones and flowed a cumulative rate of about 100MMcfg/d plus condensate. One DST reportedly flowed 23 MMcf/d of gas, a second flowed 41 MMcf/d of gas and a third recorded 36 MMcf/d of gas.  The offered area is covered by 2D seismic data shot by previous operators. The total length of the seismic data is 1,480.32 km and furthermore, the optional data volume provided by Migas also includes an additional 827.98 km of seismic data.  Six wells have been drilled within the block to date. All of the wells were drilled in the northwestern part of the block. The wells are Mandala 1, Jarua South 1, Terie 1, Monie 1, Monie South 1 and Wami 1. Sunoco drilled Mandala 1 in 1975, Terie 1 in 1976 and Monie 1 and Monie South 1 in 1980. Wami 1 was drilled by Gulf in 1976. Jarua South 1 was drilled by Marathon in 1980. All wells drilled in this block were P&A as dry holes.  The Babo PSC, originally covering an area of 15,875 sq km, was awarded to Mobil Exploration Bomberai Inc (60%) and BHP Petroleum (40%) on 3 August 1990. The contract was awarded on the basis of payment of signature bonuses of USD 2.05 million. The work programme commitment was USD 20 million in the first six years and USD 70 million in 10 years. The contract was awarded "frontier terms" on the basis of its location in eastern Indonesia and the fact that the main plays were at pre-Tertiary level.  Effective 1 September 1993, BHP farmed-out its total 40% interest to Arco, with Mobil also farming-out some 20% to Arco. Arco also assumed operatorship as of that date.   The 3,495 sq km Arguni East PSC was awarded (together with the 4,865 sq km Arguni West PSC) to Arco (80%) with partner Inpex (20%) on 16 November 1998. The block was awarded on the basis of payment of a large total Signature Bonus of USD 7.2 million. The firm work programme commitment is USD 39.5 million for the first three years and USD 84 million in 10 years.  Mobil's first exploration program in the block was to record 1,523 km of land gravity and magnetic data between early 1991 and January 1992. A total of 1,277km of field geological surveying were also conducted between these dates. A total of 10,000 sq km of Synthetic Aperture Radar (SAR) imagery was also flown across the contract area in 1991.   These surveys were believed to have revealed at least three prospects in the PSC, including the West Onin Prospect which appeared to be an early candidate for drilling. West Onin 1 was set to be drilled in early 1993 but was postponed as Mobil sought partners. The well was expected to test Jurassic sandstones at a depth of approximately 2,438m, with the PTD set at 3,048 m. The mapped area of closure was believed to have been about 324 sq km.   The first seismic campaigns conducted in the Babo PSC were a 390 km 2D survey in November/December 1997. In May 1998 a programme designed to record 325km of 2D data was started. That survey was completed in September 1998 after having recorded 318km of data. The survey is believed to have highlighted two Jurassic gas prospects and one significant lead. Arco was concentrating on the eastern less structured area of the block. Previous operator Mobil had concentrated activity in the highly structured western part of the PSC.  On 27 August 1999, Arco commenced the exploration of the blocks with acquisition of a planned 350 km of 2D shallow water seismic data. In October 1999 the survey was completed with some 430 km acquired. In May 2002, BP (renamed from Arco) commenced the acquisition of a 794 km 2D seismic survey over the onshore and transition zone areas of the Arguni East and Arguni West PSCs. The contract for the seismic acquisition was awarded to PT Alico/CGG. The acquisition commenced with the transition zone coverage, and the survey was completed in October 2002.  In 2004, BP had plans to drill at least one well in the Babo PSC, with the first well believed to be designated Saritu 1. A request by former operator Arco to extend the exploration period by three years was re-submitted after previously not being approved by Pertamina. The exploration period was due to expire on 3 August 2000. It is believed that the extension was approved in early 2002, as BP issued tenders for its exploration programme in late April 2002. However, it is believed that the operator did not proceed with the drilling and the Babo PSC was relinquished in May 2007.  In May 2005, BP submitted a proposal to relinquish the Arguni East PSC. BP had been offering to farm out up to 40% interest in the PSC. The BP-Migas approval for the relinquishment was expected in April 2006.
Indonesia, Kasuri PSC