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Eni Announces Jangkrik - Gas Discovery in Indonesia

Source: www.gulfoilandgas.com 6/23/2010, Location: Asia

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Eni has successfully appraised the Jangkrik gas discovery in offshore Indonesia, in the Muara Bakau PSC, Kutei Basin, East Kalimantan.

The Jangkrik-2 appraisal well is located approximately 70 kilometers from the coast of Indonesia and has been drilled to 2449 m in 425m of water depth. The well encountered more than 80m of net gas pay in excellent quality reservoir sands of Pliocene age.

This result significantly increases the field estimate of recoverable resources , with respect to the discovery well. During the Jangkrik 2 production test, the well produced high quality gas at a tubing constrained rate of 17.5 MMscfd.

Eni, through its Indonesian subsidiary, is the operator of Muara Bakau PSC with a 55% interest, with GDF Suez holding the remaining 45% interest in the project.

Following this successful result, the joint venture plan is to proceed quickly with the assessment of the technical and commercial viability of a fast-track development of the gas of the Jangkrik field that will be routed to the Bontang LNG plant.

Overall, in Indonesia, Eni holds working interests in twelve permits, and operates six of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor. In the Kutei basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan, where Eni has an equity production of approximately 20,000 boed and has recently been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC) through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The Sanga Sanga project would be the first LNG plant in the world to be supplied by CBM.

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