GSS Energy could be looking for farm-in partners in the Trembul KSO, located in onshore East Java Basin. The company indicated in its 2018 annual report to be in the final stages of regulatory approvals for gas production from two wells in the block, targeting first gas by the end of 2019. By farming out some interest, the company could gather cash resources towards the commercialization of the wells and for potential new exploration wells to be drilled in the block.  The total production rate from the two wells, SGT-1 and Trembul P-1, has been estimated at approximately 3.5 MMcfg/d.  The last activity in the block was in August 2018 with the successful re-entry and production testing of Trembul P-1 (originally drilled by Pertamina in 2005). Two gas-bearing sandstones were tested and flowed at an aggregate rate of 2 MMcfg/d. The previous well, SGT-1, was drilled by SGT in 2017 and encountered gas in eight sandstone intervals. SGT-1 was estimated to have a production capacity 1.5 MMcfg/d for 14 years, from two of the discovered gas zones.  The Trembul KSO was awarded in October 2016 to PT SGT, with GSS Energy holding 51% and the Central Java government holding 49% in the joint venture. After the initial three-year commitment period, GSS is entitled to increase its effective economic interest to 89%, with the Central Java government retaining 11% interest.  GSS Energy is a Singapore-listed company which operates in the precision engineering business. The company has diversified into the oil and gas business in 2014.  Background Information  GSS Energy had announced the initial award of the Trembul KSO on 5 October 2016. In acceptance of the award, PT SGT made a payment of USD 0.5 million to Pertamina. Following acceptance, the operator commenced discussions with Pertamina towards finalizing the formal joint operations agreement.  The Trembul area lies in the Kening Trough, between the Purwodadi High and the East Cepu High. Reservoir potential could be found in the Ledok, Wonocolo, Ngrayong, Tawun and Kujung formations.  The Trembul field was discovered in 1913 by Dutch company NKPM. The field started production in 1917, reaching a peak rate from eight wells before being abandoned in 1941, with a cumulative production of 434,000 bo.  On 13 December 2017, GSS Energy announced the discovery of oil and gas at the SGT-1 well. The well, drilled to TD at 1,255 m, encountered eight hydrocarbon bearing sandstone intervals with a total net pay of 37 m. Following successful production testing, Pertamina approved commercial production from two gas zones within the lower Ngrayong Formation, at depths of 863-869 m and 910-915 m. A plateau production rate of 1.5 MMcf/d of sweet gas (91% methane, with no H2S and negligible CO2) for 14 years is estimated for the gas zones.
GSS Energy could be looking for farm-in partners in the Trembul KSO, located in onshore East Java Basin.