HOUSTON, Aug. 27 -- Australian operator Santos Ltd. agreed to farm in to the 4,246 sq km Madura offshore production sharing contract in the Madura Strait, East Java.
The farm-in agreement gives Santos (Madura Offshore) Pty. Ltd. the operatorship of and 75% interest in the PSC, which is 102 km east of Surabaya in shallow water. Talisman (Madura) Ltd. will retain a 75% interest.
Santos will drill a well this year at its sole cost.
Santos said the agreement would give it increased exposure to a trend that includes the recent Oyong oil and gas discoveries and Anggur prospect. A drillstem test of a 4-m interval in Oyong-1 well flowed 762 b/d of 41.9°-gravity oil and 1.22 MMcfd of gas through a 24/64-in. surface choke (OGJ Online, Aug. 23, 2001).
Final testing of the Oyong 1 discovery found more than 1,100 b/d of oil flowing through a 11-mm choke at flowing tubing head pressure of 999 psi. Gas flowed at over 12 MMcfd through a 19-mm choke at a flowing tubing head pressure of 1,005 psi.
Santos� Managing Director John Ellice-Flint said, "The Madura PSC farm-in leverages our recent discovery in the Sampang PSC. The Madura PSC is on-trend with the Oyong oil and gas discovery and the Anggur prospect where Anggur-3 has commenced drilling. The farm-in gives us greater exposure to this emerging hydrocarbon play."
He said Santos hopes for Oyong production within 2 years.
The company said, "The Madura offshore PSC permit is 35 km from the Oyong 1 and 2 hydrocarbon discoveries that intersected a 145-m hydrocarbon column, 110 m of gas and 35 m of oil." Most of the PSC is in less than 100 m of water.
