By the OGJ Online Staff
LONDON, Feb. 26�Premier Oil Natuna Sea Ltd. said Monday it had successfully completed appraisal drilling on its Ujung Pangkah field in East Java, Indonesia, confirming reserves on the Pangkah Block structure in excess of 450 bcf of rich gas�equivalent to 90 million bbl of oil.
The UK independent oil and gas company said there is a possibility of developing oil from an accumulation underlying the gas.
All three wells in the Ujung Pangkah appraisal program�two vertical wells, UP-2 and UP-3, and a planned sidetrack of UP-2 drilled by the Trident 17 rig�encountered commercial hydrocarbons. Premier said a coring, logging, and sampling program was being conducted.
In collaboration with the Pangkah production sharing contract partners, Premier was considering developing options for Ujung Pangkah, while "actively pursuing a market for the gas."
Premier CEO Charles Jamieson noted, "the proximity (of Pangkah Block) to the important power markets in East Java should allow us to fully commercialize these assets, as well as significantly increasing the group's reserves base in Indonesia."
A seismic shoot is being planned for later this year to size up a possible western extension to Ujung Pangkah.
Partners are Premier, the operator with 40%, Amerada Hess (Indonesia-Pangkah) Ltd. 36%, Gulf Resources (Pangkah) Ltd. 12%, and Dana Petroleum PLC 12%.
