indonesia- tanjung aru prospect

Dear All,

Whilst waiting for news re Block 105, I thought I would do some homework regarding Tanjung Aru. I notice in the company announcements there are two wells marked on the graphic showing the Tanjung Aru block.

I thought I would set out the development of the block from what I could find on the internet for my and everyone's interest.

Amerada Hess announced their acquisition of the Block thus:-

"New block boosts Amerada Hess activities in South East Asia

Amerada Hess (NYSE: AHC) has been notified of its successful bid for the Tanjung Aru block, offshore East Kalimantan, Indonesia.

The award of the block, which is subject to Presidential approval and execution of the Production Sharing Contract (PSC), will see Amerada Hess as the operator of the block with a 50% interest with license partner, Malaysia's Petronas Carigali, also having 50% equity.

The Tanjung Aru block, which covers some 4160km2 with water depths ranging from 150m to 1700m, is in the highly prospective Kutei basin where a number of large oil and gas discoveries have been made in the last few years.

Comprehensive exploration is expected to begin in early 2002 with Amerada Hess already having purchased 1477km2 of 3D data over the block.

Tanjung Aru brings the company's total number of Indonesian blocks to six, only 4 years after Amerada Hess first became an operator in Indonesia in 1997 by farming in to the Lematang PSC, containing the Singa gas field."

http://phx.corporate-ir.net/phoenix.zhtml?c=101801&p=irol-newsArticle&ID=490151&highlight=

The Oil & Gas Journal article of 19 September 2001 was:-

"Petronas Carigali, Amerada Hess to explore Indonesian block
09/19/2001

By ROBERT PIEPUL

By the OGJ Online Staff

HOUSTON, Sept. 19 -- Indonesia has awarded Amerada Hess Corp. and Petronas Carigali Sdn. Bhd. the Tanjung Aru Block in the Makassar Straits off Kalimantan.

The award is subject to presidential approval and execution of the production-sharing contract. Amerada Hess would operate the block with 50%, while the subsidiary of Malaysia's state oil and gas company would hold the rest.

Tanjung Aru covers 4,160 sq km in 150-1,700 m of water in the Kutei basin. Unocal Corp.'s Ranggas and West Seno discoveries are in that basin.

Petronas Carigali and Amerada Hess have purchased 1,477 sq km of 3D seismic data on the block. They plan to drill at least three exploration wells.

Petronas Carigali holds 50% interests in two other Indonesian blocks, Pasemah in South Sumatra and Ketapang off East Java."

On 6 August 2002, Alexander's Gas & Oil Connections reported thus:-

"Amerada Hess scores discovery off Indonesia's Kalimantan
Aug 06, 2002 02:00 AM

Amerada Hess has scored a discovery in its deepwater Tanjung Aru Block in the Makassar Straits off Indonesia's Kalimantan. The company has revealed that its Halimun-1 exploratory well drilled by the Transocean Sedco 601 semi-submersible in the south-eastern Mahakam Delta's barely explored waters went to a total depth of 7,877 ft beneath the seafloor in waters 3,480 ft deep.

The company said the Halimun-1, the first of a two-well exploration program on the block for this year, was drilled in the northern sector of the block in the Kutei Basin, approximately 34 km south of an earlier Mobil duster drill site. The Sedco 601 was moved following the discovery well to drill the second exploration well, the Papandayan-1, some 14 km west of the discovery site.

The Papandayan-1 is scheduled for a total depth of 8,700 ft targeting Late Miocene and Pliocene sandstones. The Tanjung Aru Block is in one of the most prospective areas of the Kutei Basin, location of a number of recent sizable oil and gas discoveries. It covers an area of some 4,160 sq km and has water depths ranging from 492 ft to 5,577 ft."

http://www.gasandoil.com/news/2002/09/dix23610

For commercial reasons, on 30 November 2005 Alexander's Gas & Oil Connections reported:-

"ConocoPhillips and Amerada Hess to return contract areas to Indonesia
Nov 30, 2005 01:00 AM

Multinational oil firms ConocoPhillips and Amerada Hess will return to the Indonesian government their contract areas considered to be not commercially feasible.

ConocoPhillips will return the Nila Block off Natuna Island and Amerada Hess will do the same for Tanjung Aru block in Makassar Strait.

The two production sharing contractors failed to find commercially feasible oil or gas reserve, Zainal Achmad an official of the upstream oil and gas regulatory body (BP Migas) said.

The two oil companies signed contracts for exploration of the two blocks in November 2001."

http://www.gasandoil.com/news/2005/12/cns55135

On 5 December 2005 it was further reported:-

"Firms relinquish Indonesian contract areas

ConocoPhillips and Amerada Hess Corp. will relinquish to the Indonesian government contract areas not considered commercially feasible.

Amerada Hess will return the Tanjung Aru Block in the Makasaar Strait, and ConocoPhillips will do the same for the Nila Block in the Kutei basin off Kalimantan.

Zainal Achmad, an official of BP Migas, said the companies failed to find commercial quantities of crude oil or natural gas.

ConocoPhillips last year said Menur-1, its third and final commitment well, was plugged and abandoned as a dry hole. It said it was pursuing full relinquishment of the Nila production-sharing contract (PSC) before the end of the exploration term in May.

Indonesia awarded a PSC for Nila Block to Conoco Nila Ltd. and Inpex Natuna Ltd. in 2001. The award was part of an exploration and production tender made earlier that year (OGJ Online, Dec. 13, 2001).

Earlier in 2001, Indonesia awarded Amerada Hess and Petronas the Tanjung Aru Block (OGJ Online, Sept. 19, 2001)."

http://www.ogj.com/articles/print/volume-103/issue-45/regular-features/ogj-newsletter/ogj-newsletter.html

Finally the following article of 22 December 2011 from the Scandinavian Oil Gas Magazine is one of great interest:-

Neon Energy Limited (NEN) report the execution of the Tanjung Aru Production Sharing Contract (PSC) by a Joint Venture consortium comprised of the following companies:

Neon Energy Ltd 42% KrisEnergy Ltd (Operator) 43% Natuna Ventures Pte Ltd 15%

The PSC was awarded via tender, following an extended Joint Study conducted by the consortium in co-operation with the regulatory authority, MIGAS.

The Tanjung Aru block covers some 4,200 sq km offshore Kalimantan, in water depths ranging from 20m to more than 1,000m.

The block is located in a relatively underexplored area of the Kutei Basin, one of Indonesia's most prolific hydrocarbon provinces with more than 12 billion barrels of oil equivalent discovered to date.

The JV has already identified multiple petroleum plays in both shallow water and deep water, each with the potential for commercial accumulations of gas/condensate and/or oil.

Two gas discoveries are situated within the block, both drilled by Amerada Hess in 2002.

Several leads are evident from the existing 3D seismic volume available within the block, and are likely to contain prospective resources well in excess of the minimum economic field size (MEFS).

The MEFS is deemed to be low as a result of the favourable "frontier" PSC terms, proximity of the block to infrastructure and increasing domestic gas prices.

The PSC has an initial three-year term, with an associated work commitment of 500 sq km of 3D seismic acquisition and processing.

The 3D seismic program will commence during 2012 and will be designed to delineate prospects for drilling in the second three- year term.

Neon Energy Managing Director Ken Charsinsky commented “This addition to Neon’s diverse portfolio highlights the Company’s disciplined approach to new venture acquisition. We have taken the time necessary to secure material interests in quality assets with work commitments commensurate to the risk/reward profile of the opportunities. We look forward to working with our partners as we mature the first exploration phase of this block, commencing with the 3D seismic survey next year.”

http://www.scandoil.com/moxie-bm2/news/neon-energy-signs-psc-for-tanjung-aru.shtml

So we know there is something there but is it yet enough with current prices, newer technology available and perhaps 3D from other areas of the block? Let me know KC...