Lundin Discovers Oil Offshore Malaysia

Lundin Discovers Oil Offshore Malaysia

Swedish oil company Lundin Petroleum AB has discovered oil in the Ara-1 well that was drilled in Block PM308A, offshore Peninsular Malaysia.

Ara-1 was drilled to a total depth of 4,030 metres by the jackup rig West Courageous in 75 metres water depth. The objective of the well was to target the extension of the Paleogene intra-rift oil sands that had been 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 800m.

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.

Lundin Petroleum intends to incorporate the well results into the recently extended regional 3D seismic data set to identify areas where local sand reservoir sources may be better developed and can high grade future drilling prospects.

The West Courageous jackup rig will be demobilized following completion of Ara-1, the final well of Lundin Petroleum’s 2012 drilling campaign.

The PM308A production sharing contract (PSC) is operated by Lundin Malaysia BV with 35 percent equity interest. Partners are JX Nippon Oil & Gas Exploration (Peninsular Malaysia) Limited with 40 percent and PETRONAS Carigali with 25 percent.

Press Release, March 11, 2013



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