Apicoâs farm-in opportunity in L27/43 concession in the Khorat Plateau Basin, northeast Thailand, is still available, as of late August 2019. The company is operator and holds 100% interest in the block.  PTTEP has previously acquired a total 72.8% interest in Apico, through two separate transactions with Coastal Energy and TATEX in 2019. The L27/43 block contains the undeveloped Dong Mun gas discovery and several undrilled prospects.   On 31 July 2019, PTTEP officially signed a Share Purchase Agreement (SPA) with Coastal Energy (Khorat) Limited for a 39% stake in APICO LLC. The deal, which is expected to be completed within the third quarter of 2019, is worth approximately USD 74 million. After the completion of the transaction, PTTEPâs interest in APICO LLC will increase to 72.8%. The deal is additional to an earlier acquisition from TATEX Thailand which was completed in June 2019. The deal that is worth USD 64 million for a 33.8% stake in Apico LLC was officially signed on 15 February 2019.   Prior to these two acquisitions, the ownership of the Apico LLC joint venture consisted of NuCoastal (a subsidiary of Coastal Energy) (39%), TATEX Thailand (33.8%) and Ophir Energy (27.2%, later acquired by Medco Energi).  Apico was granted a 31.91 sq km production license in the Dong Mun field by Department of Mineral Fuel (DMF) on 22 August 2012. The estimated cost for the development project is approximately USD 23 million. First commercial gas from the field was initially expected to flow in 2017 with output capacity of 14 MMscf/day. The application of the production area was submitted after the successful re-entry drilling of the Dong Mun 3ST in February 2012. The well encountered a total of 113 m of gas column in a carbonate section with 6% porosity. Multi rate well test had successfully flowed dry gas to surface at average rate of 15 MMscf/day.   On 31 December 2014, the field was estimated to contain 90 Bcf of gas reserves (2P). The production period for Dong Mun field is scheduled to expire on 24 September 2032. Â Â   Background Information   In 2006, Apico (Khorat) Limited, a 100% owned subsidiary of US-based Apico LLC, officially acquired 100% interest of onshore exploration concessions L15/43 and L27/43 from NuCoastal Corporation. The blocks were formally awarded to NuCoastal in 2003. The concessions are located on the Khorat Plateau and respectively surround and adjoin Amerada Hess's E5 North concession.   Dong Mun field was discovered by Dong Mun 1 (DM-1 1990) which successfully tested a shelf edge reefal build-up in Permian Saraburi Group. The well was tested over four intervals in the same limestones, flowed a maximum of 23 MMcfg/d from the section 2,705-2,798m. Tests over the deeper sections showed a marked reduction in flow rates, attributed to the lower permeabilities at depth. Dong Mun 2 was then drilled to the south, however was abandoned having flowed only 0.13 MMcfg/d from a limestone section at 2,763-2,882m. The well tested a similar reef build up to that of DM- 1, but this time within a carbonate platform (rather shelf edge) setting.   Dong Mun-3ST1 has tested gas from the re-entry operation on the 2007âs Dong Mun-3 well. The well encountered 113 m of gas column in the carbonate section with 6% porosity. Multi rate well test had successfully flowed dry gas to surface. The well was tested for 24 hours and produced at an average rate of 15 MMcfg/d with flowing pressure of 1,950 psi through a 32/64" choke.Â The sidetrack well was drilled to TD at 2,539 m TVDSS (3,010 m MD). With very encouraging result from DM-3ST combined with existing DM-1 data, it indicates a commercially viable development project.   The approval of the Dong Mun production block was granted after the successful re-entry drilling of the Dong Mun 3ST in February 2012. The development period for Dong Mun field has been extended to August 2020. The production period for Dong Mun field is scheduled to expire on 24 September 2032.
Apico (Khorat) Ltd L27/43 - Farm-in opportunity is still available