Medco agreed to acquire 100% interest in the North Sokang PSC, located in the East Natuna Sea, from previous operator Black Platinum Energy, on 23 July 2019. The deal is subject to government approval.  This acquisition will expand Medcoâs acreage East Natuna, which also includes the South Sokang PSC and a part of the South Natuna Sea Block B PSC. In early August 2019, the company reported plans to conduct exploration activities in the area in 2019/2020.  The North Sokang PSC includes the Dara 1 gas discovery. Black Platinum was previously planning to drill up to two wells to appraise the discovery, subject to finding a farm-in partner. As of March 2018, the discovery was estimated to contain in-place resources of 1,495 Bcfg.  A major risk associated with exploration in the area is the high CO2 content in the gas, however the shallower reservoirs (above 800 m) have been found to contain low contamination.  According to a Preliminary Plan of Development released by Black Platinum in 2018, potential commercial scenarios for future gas production from the Dara field include the domestic market via a Floating LNG (FLNG) facility or a new-build pipeline to Natuna island. Another option under consideration was sale to Singapore via the West Natuna Transportation System.  Background Information  On 22 September 1997, the North Sokang block, with an area of 10,260 sq km, was awarded to Total after a period of direct negotiations and upon payment of bonuses of USD 1.25 million. The PSC carried a firm Work Obligation of USD 24.8 million in the first three years and USD 64 million in 10 years. Prior to Total, the block was part of the South Natuna Sea Block B, awarded to Conoco in 1968. Only two wells had been drilled within the block limits at that time, both on its southern margin by Conoco in 1974 and 1975. The first, Antoni 1, was abandoned as a sub-commercial gas discovery but the second, Teri 1, flowed 7.2 MMcf/d. It is believed that the gas in both wells contained a high CO2 ratio.  Total completed a 67 km 2D seismic survey over the block in August 1998 following the completion of an earlier 3D programme in July 1998. In 2000, Total conducted a two-well drilling campaign with Dara 1 and Dara 2. Both wells encountered gas which was deemed non-commercial due to the high CO2 content. Total relinquished the block in September 2001.  The North Sokang block was again offered on 20 May 2010 as part of the First Petroleum Bidding Round 2010 under the direct offer mechanism. The block covered an area of 5,466 sq km in shelf waters, with maximum depths of around 130 m. The block was officially awarded on 26 November 2010. Firm commitments for the first three years of exploration included G&G studies (USD 0.70 million), 800 km 2D seismic acquisition (USD 1.5 million) and drilling of one exploration well (USD 8.0 million).  Dara exploration history  Dara 1 was plugged and abandoned on 12 May 2000 by Total as a non-commercial gas discovery with 12-88% CO2. About 25.5m of net gas pay was encountered and it targeted Upper Miocene deltaic sands. The well was spudded on 19 March 2000 and was drilled to a TD of 2,375m, short of the PTD at 3,036 m.   Dara 2, located 25 km west of Dara 1, was abandoned by Total on 17 June 2000 with non-commercial gas volumes encountered. Gas is believed to have contained 70-80% CO2. The well was spudded on 15 May 2000 and was drilled to a TD of 1,500 targeting Pliocene deltaic sands.  Black Platinumâs first well Dara 3 well was a successful gas appraisal well drilled in the block during 2012. The well was plugged and abandoned in late November 2012. The well intersected 18m of net gas pay and tested 9 MMcfg/d, with 1.9% CO2 and no water, from stacked Upper Pliocene deltaic sandstones of the Muda Formation. Bypassed gas was targeted from these sands, which could have thicknesses of 1 to 10 m each, and Dara 3 has proven the viability of this play, with low CO2, in the area. Dara 3, located within the vicinity of the Dara 1 discovery well, was spudded on or around 31 October 2012 and was drilled to a TD of 970 m, slightly deeper than the PTD of 960 m, using the using the Diamond Offshore âOcean Generalâ S/S. It is the second of two planned appraisal well campaign in the block, immediately following the Dara 4 well.   Dara 4 appraisal well was plugged and abandoned in late October 2012. Net gas pay of 5 m was encountered from the primary Pliocene sand objective but it was likely non-commercial as no DST was conducted. A gas sample with 1.3% CO2 was recovered from one of the Pliocene sand units. The well, located 2.7km southeast of the Dara 2 appraisal and 18km west of the Dara 1 gas discovery, was spudded on or around 11 October 2012 and was drilled to a TD of 770 m. It had a PTD of around 740 m and had similar targets as with the Dara 3 appraisal well. Dara 4 fulfilled the firm one well drilling commitment for the block.  Dara is a large four-way dip structure. The Dara 2 and Dara 4 wells were drilled in the central part of the structure, while Dara 1 and Dara 3 were drilled in the eastern part.
Medco agreed to acquire 100% interest in the North Sokang PSC, located in the East Natuna Sea, from previous operator Black Platinum Energy,