1)Is the South Sumatra Basin prospectivefor oil?All five of the...

1)Is the South Sumatra Basin prospectivefor oil?
All five of the world’s largest publicly listed oil and gas companies(ExxonMobil, BP, Total, Chevron, and Shell) either operate or have expressed interest in further investment in Indonesia1 .

Santos and Dart energy are two asx-familiar companies who are targeting the South Sumatran Basin. In a recent Santos corporate presentation(asx announcements 5th and 6th March 2012), the South Sumatra basin is a specified drill target for this $13.6 billion stock, which highlights the prospectivity of this area in relation to the value of the Quest exploration permit.
The maps below highlight the proximity of both Quest’s and Santos’ acreage in South Sumatra.
GENERAL


2)Background exploration includes a joint study between Prabu Energy and the Geological Department of Trisakti University. The study
showed that:
I. Gas and oil shows in surrounding wells in conjunction with observed oil seeps and evidence of a proven petroleum system in the area.
Significantly, an adjacent well recorded log and
pressure data confirming a 107m gross gas column within the
primary Talang Akar Formation reservoir.

II. Existing seismic data adjacent to the Ranau PSC shows
potential Direct Hydrocarbon Indicators (DHIs), providing strong support for widespread occurrences of oil and gas in this area.

III. In addition the study has determined that these sub-Basins have
sufficient thermal maturity to generate oil and gas.
IV. This seismic program is designed to define Leads 2, 3 and 4 in Quest’s highest priority sub-Basin, Jaya. Lead 1 is the target of a future seismic program.

3)The Joint Study estimated un-risked prospective resources in these four leads of 55million barrels of oil or 140 billion cubic feet gas
How did Quest acquire the exploration
acreage?
Quest picked up the Ranau exploration block in September 2011,when Indonesian Ministry of Energy auctioned 9 blocks (11 offered).
The two unsuccessful block auctions were (1) North Semai and (2) West Berau (neither of these unsuccessful blocks have immediate proximity to Quest and the South Sumatra Basin).
A valid question toask here is how Quest came to be the successful applicant for this block, considering that the oil majors would seem the more likely parties to be awarded the block. To quote the Director General of Oil
and Gas, Evita Legowo, Jakarta, “the government appreciated that a number of small companies joined as bidders. The government deliberately set the situation as it aims at allowing national private companies to participate in oil and gas exploration.” 2
This is supported by the fact that the Ranau PSC is 20% owned by a local private company in Indonesia, of which Mr Mochamad Thamrin is a director.

Quest has developed key relationships with prominent oil
and gas professionals in Indonesia, in particular with Mr Mochamad Thamrin, a leading industry professional with a deep knowledge of the petroleum geology of South Sumatra.
What were the terms of the acquisition?



Now that i have spent a bit of tim eon this i see more upside at current shareprice- good time to buy and ive put my money where my mouth is and bout another mill today

Cheers MMM