March 12, 2013

Lundin Petroleum Discovers Oil Offshore Peninsular Malaysia

Swedish independent oil and gas exploration and production company Lundin Petroleum AB has discovered oil offshore Peninsular Malaysia.

It said on Tuesday its unit Lundin Malaysia BV discovered oil in the Ara-1 well that was drilled in Block PM308A.

It said Ara-1 was drilled to a total depth of 4,030 metres by the jack-up rig West Courageous in 75 metres water depth.

Lundin added the objective of the well was to target the extension of the Paleogene intra-rift oil sands encountered in the Janglau-1 well drilled by Lundin Petroleum in 2011.

“Ara-1 encountered 9 thin oil-bearing sands in a high-pressured intra-rift section extending over a vertical interval of 800 metres,” it said.

It said the well confirmed the extension of the new intra-rift oil play across a very large structural complex in the northeast of PM308A below a major regional seal.

The well also found effective sand reservoirs at depths below 3,500 metres. The oil pay zones intersected by Ara-1 were however individually thinner than pre-drill expectation.

“Ara-1 was plugged and abandoned as an oil discovery well after completion of the well evaluation programme. Work has commenced to estimate the range of resources discovered,” it said.

Lundin said the PM308A production sharing contract is operated by Lundin Malaysia BV with 35% equity interest. JX Nippon Oil & Gas Exploration (Peninsular Malaysia) Ltd has a 40% stake and Petronas Carigali 25%.

Source: The Star