Operations - Exploration & Production
Lemang PSC Block

Sumatra, Indonesia

The Lemang PSC block is located in Jambi Province, South Sumatra, Indonesia, a region with one of the highest success rates in the world for oil and gas exploration. The block is adjacent to the Jabung block, operated by Petrochina, an already-producing block with daily output of approximately 53,000 boepd of oil and gas (Jakarta Post 2012).

The Production Shearing Contract (PSC) for the Lemang block was awarded by BPMIGAS in 2007, and remains valid until 2037 and its covers of a total retain area of 2,120 square kilometers.

Lemang PSC Block Location is close to the Oil Terminal and Booster Station Facilities

Based on volumetric studies from international petroleum consultancy DeGolyer & MacNaugton (D&M, June 2011), the Lemang block holds an estimated 364 million barrels of oil and 467 billion cubic feet of gas (gross recoverable prospective resources); whereas RISC (December 2014) has calculated 281 mmbl OOIP and 93 bcs GIIP for mid case reserve of the Talang Akar Formation as a main hydrocarbon producer.

Well cluster model at Akatara Development Drilling Area
(existing 4 pads)

For the Lemang PSC block, Eastwin Global Investments Limited ("Eastwin"), fully owned subsidiary of Sugih, owns a 34% Participating Interest. Mandala Energy Limited ("Mandala"), a South-East Asian focused oil and gas exploration and Production Company backed by leading global investment firm KKR as a Operator, owns 35% Participating Interest while PT Hexindo Gemilang Jaya ("Hexindo"), a subsidiary of Singapore listed company Ramba Energy Limited, has a 31% Participating Interest.

Geoseismic Northwest – Southeast section represents excellent potential for Miocene thrust anticline objectives. The Selong-1 well (total depth 6432’ at pre-Tertiary Basement) has been drilled in the block resulted gas and oil from DST’s Lower T.Akar and Upper T.Akar clastics which is proved the existence of a working petroleum system. The Akatara-1 (total depth 6365’ at pre-Tertiary Basement) was drilled at adjacent to the Selong-1 well, has proved test for hydrocarbon prospectively of three ways dip closure against fault and the primary target will be the fluviátil sandstone of Lower Talangakar.

The operator of the Lemang block has made two successful oil and gas discoveries at the block in exploration drilling of Talang akar reservoirs, discovering 222 feet of gross pay at the Selong-1 well( 790 bopd & 16.8 mmscfd) and 274 feet of gross pay at yhe Akatara-1 well (380 bopd & 11.0 mmscfd). The operator also announced successful appraisal drilling of the Akatara prospect in August 2013 and proceeded the Plan Of Development (POD) onJuly 15th 2015.

PT Sugih Energy Tbk ("Sugih" or "the Company") (SUGI:IJ), an Indonesian oil and gas exploration and production company, has announced "1st Oil" on 15th November 2016 that the Lemang PSC asset commenced initial oil production peggedat 500 barrels per day from one well (Akatara 2 well). It is following the issuance of forestry lease permit from the Indonesian Ministry of Forestry and Environment to perform Oil & Gas Exploitation for the Akatara Field located in the Lemang PSC block.

The Akatara Field is located in the surrounding prospects and leads of the upside potential hydrocarbon vicinity.

We look forward to drill more wells in the Akatara field in the future to increase production and to unlock the high potential of this strategic energy asset in Indonesia with our partners. We are targeting 500 barrels of oil per day for each additional new well. Today's news reinforces the attractiveness of our low cost asset in low price environment and of our business plan to unlock our company potential and satisfy the growing Indonesian energy needs.

 

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