KrisEnergy continued offering a farm-in opportunity in the Bala-Balakang PSC (formerly Tanjung Aru PSC), in April 2018. The 3,145 sq km block is located at the southern edge of the Kutei Basin, with water depths ranging between 20 and 1,000 m. The block is estimated to contain over 8 Tcf of in-place resources.  KrisEnergy holds 85% operating interest in the block while Natuna Ventures Pte Ltd holds the remaining 15% participating interest. The operator is offering up to 42% 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 12 December 2019 (end of exploration year 8).  All the firm commitments for the first exploration term in the PSC have been fulfilled, following the acquisition of a 500 sq km 3D Broadband seismic survey by KrisEnergy in 2014. The survey commenced on 24 March 2014 using Western Gecoâs âWestern Monarchâ M/V, and was completed on 11 April 2014. The survey complemented the existing 3D seismic dataset and allowed the identification of multiple play types and bright spots at various depths.  The Bala-Balakang PSC contains two gas discoveries, Halimun 1 and Papandayan 1. As of 31 December 2015, contingent resources in the block were estimated at approximately 110 Bcfg (on a 100% working interest basis).  The block is expected to be primarily gas prone. Typical exploration targets in the block are Miocene to Pliocene channel/fan complexes with structural and stratigraphic traps, analogous to the Jangkrik, Merakes and Gendalo fields located to the north. Further exploration is also expected to yield biogenic gas in Plio-Pleistocene reservoirs.  The block was awarded in 2011. Firm commitments for the first three years of exploration included G&G studies (USD 0.50 million) and 500 sq km 3D seismic acquisition (USD 5 million). The block was offered in late September 2011 as part of the Second Petroleum Bidding Round 2011 under the direct offer mechanism.  The farm-in opportunity in the block was previously offered in November 2015.  For further information, interested parties may contact:  Mike Whibley  Vice President, Technical  mike.whibley@krisenergy.com  Â     Dr. Gadjah E. Pireno  Vice President, Exploration and New Ventures  Gadjah.pireno@krisenergy.com  Background Information  The Bala-Balakang PSC was previously known as Tanjung Aru PSC. The idea to change the block name was initiated by the government of West Sulawesi in late October 2014, based on the administration area which is essentially located in Western Sulawesi province. The name change was approved by Indonesian authorities in 2015.  The block was officially awarded on 19 December 2011 to a consortium of KrisEnergy (43%, operator), Neon Energy (42%) and Natuna Ventures Pte Ltd (15%). In August 2015, KrisEnergy acquired the whole of Neon Energyâs interest, increasing its total stakes to 85%.  The block straddles the Kutei Basin and the Pater Noster Shelf and originally covered an area of around 4,200 sq km, of which approximately half in shelf water and half in deep water, with maximum depths of 2,500m. The same acreage was previously operated by Hess between 2001 and 2009, under the Tanjung Aru PSC. Earlier, a portion of the block was covered by Mobilâs Makassar Strait Block A since 1973 until partial relinquishments in 1990.  Tanjung Aru PSC history  Hess (50%, operator) and Petronas Carigali (50%) were initially awarded the Tanjung Aru PSC on 7 December 2001. The effective date of the contract was on 22 November 2001. The 4,190 sq km block is located to the south of Chevron's Ganal PSC in water depths ranging from 150-1,700m. The block is under standard frontier PSC terms and signature bonus paid amount to USD 7.75 million. The total commitment for the 10 year exploration period would amount to USD 81.75 million. The firm three year work commitment included drilling of three exploratory wells and acquisition of 2,000 km of 2D seismic data and 400 sq km of 3D seismic coverage.   Prior to the award, no drilling had previously been undertaken within the limits of the block. Hess commenced exploration in the block between 8-29 April 2002, when it acquired a 2,035km 2D seismic survey. Hess also purchased 1,477sq km of 3D data over the block from an extensive regional 3D "spec" survey over the deep water Makassar Strait acquired by PGS in 1999.  Hess was the first company to carry out exploration drilling within the block boundaries. The company drilled three commitment wells which yielded two small gas discoveries (Halimun 1 and Papandayan 1, both in July 2002). For both wells, the Upper Miocene primary objective was interpreted as a basin floor fan but turned out to be mud-rich. The Lower Pliocene secondary objective, interpreted as canyon fill, contained multiple gas bearing sands. Halimun 1 has estimated 2P recoverable reserves of around 70 Bscfg while Papandayan 1 has around 50 Bscfg. The last well drilled, Rinjani 1, was plugged and abandoned in January 2005 with gas shows and was not tested. It targeted Middle Miocene turbidite sandstones and Upper Eocene sandstones in a stratigraphic trap.  Hess may have received government approval for the total relinquishment of the Tanjung Aru PSC in November 2009. It was initially reported in May 2005 that Hess and partners indicated their intent to totally relinquish the block following the drilling of the committed three exploration wells. At the time of relinquishment, rightholders of the block were Hess (32.5%, operator), Petronas Carigali (42.5%), Pertamina (15%) and Chevron (10%).  Prior to the first drilling campaign, Pertamina farmed-in for a 15% stake in the block, getting 7.5% each from Amerada Hess and Petronas Carigali.  Hess' first well, Halimun 1, was spudded on 7 July 2002. On 20 July 2002, the well was plugged and abandoned as a non-commercial gas discovery after being drilled to TD at 2,401m. Halimun 1 was drilled in 1,061m of water and was targeting Upper Miocene and Pliocene sandstones with a PTD of 3,048m. The well lies some 34 km south of Mobil's 1994 Perintis 1 non-commercial gas/condensate discovery (6 MMcf/d plus 150 bc/d).   Hess then relocated the "Sedco 601" S/S and on 21 July 2002 spudded wildcat Papandayan 1 as the second in a two well drilling programme. The well was drilled to TD at 2,463m and was plugged and abandoned as a non-commercial gas discovery without being tested on 30 July 2002. Papandayan 1 was drilled in 554m of water and was targeting Late Miocene and Pliocene sandstones with a PTD of 2,652m. The well lies in the north of the block and is located 13.5km west of Halimun 1.   Wildcat Rinjani 1 was plugged and abandoned with gas shows on 15 January 2005 after being drilled to TD at 2,727m. The well was however not tested. The well was spudded on 3 January 2005 using the "Ocean Baroness" S/S in 1,159m of water. Rinjani 1 had a PTD of 2,758m and was targeting Middle Miocene turbidite sandstones and Upper Eocene clastics in a stratigraphic trap about 10km south of Halimun 1. Rinjani 1 was the operator's final commitment well in the block. Prior to the spud of Rinjani 1, Chevron farmed in to the PSC for a 10% stake from Hess.
Indonesia, Aru PSC