Gulf Indonesia, Talisman and Pertamina Confirm Suban Natural Gas Discovery

Gulf Indonesia Resources Limited, Talisman (Corridor) Ltd., and Pertamina, the Indonesian state oil company, have made a significant gas discovery in the Corridor Production Sharing Contract (PSC) area located in south Sumatra, Indonesia, according to Gulf Indonesia and Talisman. The Suban 2 exploration well encountered two gas-bearing zones that have been tested at cumulative daily rates of approximately 43 million cf/d natural gas and 365 b/d condensate from a gas column exceeding 285 meters.

A test of the upper section, a cased interval between 2,055 and 2,074 meters, flowed approximately 28 mmcf/d of gas and 219 b/d of condensate at 2,660 pounds per square inch (psi) flowing tubing pressure through a 48/64 inch choke after fracture stimulation. The deeper section, initially tested in October, recently flowed approximately 15 mmcf/d and 146 b/d of condensate from an open hole interval between 2,121 and 2,650 meters at 3,140 psi through a 32/64 inch choke.

Suban 2 confirmed that gas reserves are present in the same pre-Tertiary play type that has been productive elsewhere in the area. Test results indicate that the two zones are in communication and that the gas contains only 5.5 per cent carbon dioxide. The partners are currently drilling an appraisal well 2.2 kilometers west of Suban 2 and have plans for an additional well and a 3D seismic survey in 1999.

The discovery lies approximately 20 km southwest of the Dayung Field that supplies gas through the Corridor Gas Project infrastructure to the Duri steamflood project in central Sumatra.

Gulf Indonesia holds a 54% interest in the Corridor Block PSC and is the operator for Pertamina. Gulf Indonesia is principally owned by Gulf Canada Resources, and Talisman (Corridor) is wholly owned by Talisman energy. Pertamina holds 10% of the contract.