KrisEnergy, a Southeast Asia-focused oil and gas company, said Thursday that its Tayum-1 exploration well in the Kutai production sharing contract offshore Kalimantan, Indonesia, has encountered gas.
A preliminary well log evaluation indicates that it encountered about 49 vertical feet of net gas pay from multiple sandstone intervals between 2,377 feet and 7,180 feet measured depth, the company said in a statement.
The well has been plugged and abandoned as a gas discovery, and the company is evaluating the results with the data from two earlier gas discoveries, Dambus and Mangkok, KrisEnergy said.
"Tayum-1 has the potential to add significant gas resources in the area between the Dambus and Mangkok discoveries and, if successful, would high-grade similar prospects in the area," KrisEnergy said last month when it announced the well's drilling plan.
"The Kutai PSC is close to existing infrastructure and may require only a relatively short pipeline to connect the development to market," it said at the time.
The Kutai PSC comprises one onshore and three offshore areas covering a combined 2,832 sq km (1,076.16 sq miles) in the Mahakam River delta in East Kalimantan.
KrisEnergy holds a 54.6% operated working interest in the Kutai PSC and is partnered by Salamander Energy with 23.4% and Orchid Kutai Ltd. with 22%.
The Kutai PSC is one of seven PSCs in Indonesia in which KrisEnergy has a stake. Except for the Glagah-Kambuna technical assistance contract, located offshore North Sumatra in the Malacca Straits, all the PSCs are in either the appraisal or exploration stage.
The Glagah-Kambuna TAC is in production, and output net to KrisEnergy averaged 860 b/d of oil equivalent in 2012, according to a presentation on the company's website.
KrisEnergy's total net production averaged 3,383 b/d of oil equivalent in 2012, most of which came from blocks B8/32 and B9A in the Gulf of Thailand, the company said.
Besides B8/32 and B9A, the company has stakes in three more offshore blocks in Thailand -- one block offshore Cambodia and two blocks offshore Vietnam.
