Newcomer AziPac has snapped up acreage off Indonesia after hatching a farm-in deal with Mitra Energy.
The upstream player, set up recently by the Azimuth Group and backed by global energy investor Seacrest Capital Group, has taken a 40% interest in the Bone production sharing contract off South Sulawesi.
The deal will leave Asia-focused Mitra with a 60% share, while AziPac will pay a working interest share of prior costs and partially carry the costs of acquisition and processing of various geophysical surveys, scheduled to be acquired during 2014.
Situated in Bone Bay, the block covers some 7516 square kilometres and sits in waters up to 2000 metres.
Exploration in the block began in the 1970s when Gulf Oil acquired 2D seismic. However, no exploration drilling was at that time conducted on the block, the nearest well being BBA-1X 50 km to the north that was drilled by Gulf Oil in 1971.
Prospectivity on the block is interpreted to be similar to the adjacent onshore Sengkang PSC, where gas is produced from Miocene carbonates charged from Eocene coals, with oil seeps also known to be in the vicinity.
New 2D seismic has confirmed the extension of an onshore producing gas play and several new oil and gas plays have been identified.
“At least 32 leads are currently mapped in the block, consisting of a large number of Miocene carbonate reef features similar to the adjacent fields onshore,” Mitra says on its website.
“In addition, a number of new plays have been identified, in both shallow and deep waters, with oil and gas potential.
“An independent best estimate for the gross unrisked prospective resource potential is 2074 million barrels of oil equivalent with an upside resource of 4266 mmboe.”
Mitra said shallow water drilling on one prospect is expected in 2015.