Horizon signs deal for offshore Thai block

Dec. 11, 2006
Horizon Oil Ltd., Sydney, along with operator Pearl Oil (Thailand) Ltd. and joint venture partner Tana Oil & Gas (Thailand) Ltd., have signed a concession agreement with the Thai government for Block G10/48 in the southern Gulf of Thailand.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 11 -- Horizon Oil Ltd., Sydney, along with operator Pearl Oil (Thailand) Ltd. and joint venture partner Tana Oil & Gas (Thailand) Ltd., have signed a concession agreement with the Thai government for Block G10/48 in the southern Gulf of Thailand.

The block, awarded this week, is immediately south of large Pailin gas field and west of Bongkot gas field, both producing and connected via pipeline to the Thai mainland.

Horizon says the newly awarded block contains the southern extension of the Pattani Trough, which is the main producing basin in Thailand, currently flowing at rates of 2.2 bcfd of gas.

Although predominantly gas prone, the basin also produces 95,000 b/d of oil.

Previous activity in the block was by Texaco Inc. in 1994 with the discovery of oil in Mayura-1, which flowed 500 b/d on test. The 10-15 million bbl of reserves were not considered commercial at the time.

Horizon is in partnership with Pearl and Tana elsewhere in Thailand and the same group has also applied for neighboring Block G11/48 immediately to the east.

Horizon and Tana have 25% each, and Pearl has the remaining 50% of the new block.