Talisman, Premier awarded Indonesian blocks

Talisman Energy Inc. and Premier Oil PLC have picked up blocks under Indonesia's latest licensing round (OGJ Online, Mar. 2, 2007).

Uchenna Izundu
International Editor

LONDON, Mar. 8 -- Talisman Energy Inc. and Premier Oil PLC have picked up blocks under Indonesia's latest licensing round (OGJ Online, Mar. 2, 2007). Indonesia's regulatory body BPMigas said 22 bids were submitted on 12 blocks under the licensing round. The bids were worth over $400 million in exploration over the first 3 years.

Talisman was awarded the 3,878 sq km Sageri block in 2,000 m of water under a production-sharing contract. Sageri was one of five blocks offered in the frontier South Makassar basin province.

The Calgary-based firm paid a $1 million signature bonus for the block, and over the next 3 years will shoot a 5,000-km 2D seismic survey and drill an exploration well. Although Talisman bid solely for full control, it will consider bringing in a partner in a joint venture participant prior to drilling.

"We believe that the South Makassar basin has all the attributes of a characteristically prolific Sundaland basin," said Talisman Pres. and Chief Executive Jim Buckee. "In our view, the Sageri Block has significant prospective resources, a diversity of play types, and indications of a working petroleum system."

Premier was awarded operatorship of the Natuna block with a 65% interest. The block is adjacent to and immediately south of Block 7&8/97 off Vietnam in which Premier holds a 45% operated interest, and to the southeast of Blocks 12E/12W in Vietnam where Premier made the recent significant Blackbird oil discovery and Dua oil and gas find.

Premier Chief Executive Simon Lockett said: "Premier tracked the geology from its producing Anoa oil field across the Indonesia-Vietnam border into Block 12 last year and made significant oil discoveries."

Contact Uchenna Izundu at uchennai@pennwell.com.

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