IHS Markit understands that PT Sele Raya has likely plugged and abandoned wildcat Belato 2 in the Merangin II PSC, located onshore in the South Sumatra Basin, around late December 2019, as an oil discovery. The well was spudded on 12 November 2019, using land rig "Bohai #25", and was likely targeting the Middle-Upper Miocene Air Benakat Formation.  The last exploration well drilled in the block was Lumbian 2 which was completed in early May 2016 as an oil and gas well, after confirmation from DST. The well may have targeted shallow sandstone reservoirs of the Air Benakat Formation which flowed oil and gas from the Lumbian 1 discovery well in 2011. Lumbian 2 was spudded around mid-March 2016. According to former partner Tata Petrodyne, several other prospects have been identified in the block, with total risked recoverable resources estimated at around 72 MMbo and 467 Bcfg.  PT Sele Raya is operator of the Merangin II PSC with 44.6% interest. The remaining interests are held by Merangin BV (wholly owned subsidiary of Invenire Energy, which acquired Tata Petrodyne in 2019) (35.4%) and Sinochem (20%).  The first well drilled on the Belato structure was Belato 1 in 2006. The well was P&A with gas shows after testing Air Benakat Formation sandstones.  The block also contains two producing fields, Belani West and Siera Southeast (also known as Tampi Fields). The operator drilled two development wells, Belani West 11 and Belani West 13 in the Belani West field in early 2019, for the purpose of increase production from this block. Other drilling activities reported as part of the 2019 work programme also include workover of two existing development wells and drilling of one exploration well.  Background Information  The block is located in the South Sumatra Basin at the junction of the north-west to south-east trending Central Palembang Depression and the north-east to south-west trending Jambi Trough. Exploration of the area has focused on the Air Benakat Formation sandstones and the deeper Talang Akar Formation sandstones, along with fractured, weathered pre-Tertiary igneous basement and granite wash sediments. Good reservoir quality has been observed in the sands locally but their areal extent is limited. Structural plays sealed intra-formationally seems the most common play, with carbonate build-ups and stratigraphic traps seen as minor.   Previously covered by Gulf's Merangin PSC (which encompassed both "Third Round" Merangin I & II blocks), the area has been relatively under explored but activity has been ongoing since the early 20th Century. Early explorers BPM and NKPM had no commercial success within the area encompassed by the new block. In the modern era, Huffco held the 5,160 sq km Mangunjaya Kapahiang PSC over the region between 1968-1982, drilling 16 wells and shooting over 3,800km of 2D seismic. Oil was discovered at Meruap and Huffco planned its development. However, the high exploration expenses incurred by Huffco led to commerciality not being granted. The area was then awarded to BP under the 5,905 sq km Merangin PSC between 1984-1987. BP shot about 845km of 2D and drilled delineations of Meruap. The global drop in oil prices in 1986-1987 prevented the field's further development until it was awarded as a TAC to BWP Meruap in 1994.   From December 1993 to December 2000, Gulf Resources (earlier as Asamera) explored the area under a later version (4,000 sq km) of the Merangin PSC. In 1994, Asamera shot a 2D survey across the Telisa Anticline, located in the north-eastern corner of the PSC. A second survey between February-October 1996 recorded 682km of 2D data. Wildcat Halilintar 1 was spudded in October 1997 at a location in the northern part of the contract area. Halilintar 1 was designed as a deep well to test for gas to add to the feedstock supply for the Duri steamflood generators in Caltex's Rokan PSC in Central Sumatra. It was designed to test Talang Akar Formation sandstones and also the potential of the pre-Tertiary section at the location. Halilintar 1 was plugged and abandoned as an unsuccessful test in March 1998, despite having intersected fractured gas bearing granodiorite overlain by a sequence of thick granite wash sediments.  PT Sele Raya was originally awarded the PSC on 14 October 2003, the company having submitted the successful bid for the block under the "Third Round" of Migas acreage releases which closed on 31 July 2003. The block was offered under standard PSC terms. The production split for the block was set at 75/25 for oil and 60/40 for gas in favour of the government. Signature bonus amounted to USD 678,000 and the PSC carried financial commitments of USD 4,522,500 for the first three years and USD 13.36 million for six years.  After the block award, Sele Raya drilled seven exploration wells: Belato 1 (October 2006, P&A gas shows), Southeast Siera 1 (November 2007, oil discovery, 700 bo/d), West Belani 1 (July 2008, oil discovery, 750 bo/d), Southeast Siera 2 appraisal (September 2008, suspended oil), Gasop A-1 (September 2009, P&A dry), West Belani Extension 1 (April 2010, suspended oil shows) and Kemang Utara 1 (June 2010, suspended, result unreported).  The eighth exploration well drilled in the block was wildcat Lumbian 1. The well, located about 27 km north-west of the South East Siera 1 and West Belani 1 discoveries, was spudded in mid-February 2011 and was drilled to a TD of 1,067m. Possible primary targets are sandstones of the Middle to Upper Miocene Air Benakat Formation. In mid/late May 2011, the operator suspended Lumbian 1 as an oil and gas discovery. Well testing operations yielded 760 bo/d plus 47 Mcfg/d.  In early August 2015, PT Sele Raya plugged and abandoned the North Tampi 1 wildcat as a dry well. The well was spudded on 31 May 2015 using a 750 HP land rig owned by PT Daqing Jaya Petroleum Engineering. The objective target of the well is in the Middle to Upper Miocene Air Benakat Formation and Lower to Middle Miocene Gumai Formation, with PTD around 1,075 m. Reportedly by local press, estimated drilling cost for the well was between USD 4 million to USD 5 million.
Belato 2 expl. in Merangin II PSC P&A, oil discovery, Target assumed Air Benakat Fm. Sele Raya (op), partners Tata Petrodyne + Sinochem.