SANTA FE ENERGY RESOURCES UPDATES RESULTS ON GEMAH DISCOVERY IN INDONESIA
HOUSTON, March 31 /PRNewswire/ -- Santa Fe Energy Resources (NYSE: SFR) today announced the results of its Gemah delineation program on the Jabung Block on the island of Sumatra in Indonesia. Three additional wells offsetting the previously announced discovery have been successfully completed, testing at a combined rate of more than 39 million cubic feet of gas (Mmcf) per day and 5075 barrels of oil and condensate per day. The success of this delineation program has the potential to nearly double the reserves of the Betara Complex, three fields comprising an area of 86 square miles in the Jabung Block. A Plan of Development (POD) for the Betara Complex including Gemah will be submitted to the Indonesian government in the near future.
The Gemah #2 well flowed gas from two intervals in the Lower Talang Akar at a stabilized combined rate of 6.7 Mmcf per day with 440 barrels per day of condensate from 33 feet of net pay. Associated CO2 content ranged from 10 to 33 percent. Based upon log analysis, there is more than 40 feet of additional untested net pay that should ultimately contribute to the productive capacity from the well. The Gemah #3 well flowed both oil and gas on completion. Two oil zones flowed at a combined rate of 1,020 barrels of oil per day. A third zone flowed gas at a stabilized rate of 9.1 Mmcf of gas per day and 800 barrels of associated condensate per day from an 18 foot interval. An additional 25 feet of potential gas pay was not tested. Associated CO2 contents for the three zones ranged from 10 to 20 percent. In the Gemah #4 well, the Company encountered approximately 180 net feet of gas pay and 40 net feet of oil pay. Oil flowed at a rate of 1590 barrels per day from a perforated interval of ten feet. Separately gas flowed at a combined rate of 21.5 Mmcf per day and 1225 barrels per day of condensate from 3 perforated intervals totaling 38 feet in thickness. Associated CO2 contents for the gas zones ranged from 10 to 60 percent.
"We are very pleased with our results from Gemah. The four Gemah wells have demonstrated a hydrocarbon column of nearly 600 feet, and a structural trap significantly larger than originally anticipated. The oil leg of this accumulation will provide significant additions to liquid reserves in the Betara Complex and also serve as the primary focus for early field development. While reserve estimates are still being finalized, we feel confident that recoverable hydrocarbon gas reserves in the Betara Complex are in excess of 700 billion cubic feet (Bcf) with potential to grow towards one trillion cubic feet (Tcf). The Betara Complex keeps getting bigger and better and will add significant cash flow to our company for many years to come," said James L. Payne, Chairman and CEO of Santa Fe Energy.
Santa Fe Energy Resources (Jabung) Ltd., Kerr-McGee Sumatra Ltd., a subsidiary of Kerr-McGee Corp. (NYSE: KMG) and Amerada Hess (Indonesia-Jabung) Ltd. each hold a thirty percent participating interest in the Jabung Block. The remaining ten percent is held by PERTAMINA Exploration and Production. The partnership is finalizing a multiphase Plan of Development, which will be submitted to the Indonesian government in the near future. The proposed POD will initially focus on the development of liquid hydrocarbon reserves estimated at more than 200 million barrels in the three-field Betara Complex. Initial production is tentatively scheduled for the third quarter of 2000. Development of the gas resources is dependent on final negotiation of gas contracts with Singapore Power. A Gas Transportation Letter Agreement (GTLA) with the State owned gas utility (PGN) was signed on March 12, 1999 and is a significant step toward realizing gas sales to Singapore. The GTLA provides for the transportation of gas from South Sumatra to Singapore.
Santa Fe Energy Resources is an independent exploration and production company with headquarters in Houston, Texas. It has production in the United States, Argentina, Gabon and Indonesia with additional exploration activities in other regions of the world. Its common stock is traded on the New York Stock Exchange under the symbol SFR.
This news release contains "forward-looking statements" within the meaning of the Securities Litigation Reform Act. Any references to potential reserves, estimated production, timing thereof or the significance of gas contracts reflect the company's current views and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission including its Annual Report on Form 10-K.
For more information about Santa Fe Energy Resources, please visit
http://www.sfer.com.
SOURCE Santa Fe Energy Resources
-0- 03/31/99 /CONTACT: Kathy Hager of Santa Fe Energy Resources, 713-507-5315/
/Photo: http://www.newscom.com/cgi-bin/prnh/19981218/DAF014 or NewsCom, 213-237-5431/
/Web site: http://www.sfer.com/ (SFR KMG AHC) CO: Santa Fe Energy Resources; Santa Fe Energy Resources Ltd.; Kerr-McGee
Sumatra Ltd.; Kerr-McGee Corp.; Amerada Hess Ltd.; PERTAMINA Exploration
and Production ST: Texas, Indonesia, Oklahoma, New York IN: OIL SU: