Highlights• Memorandum of Understanding signed with landowner to...

Highlights
• Memorandum of Understanding signed with landowner to purchase land for Prabu 1 drill-site
• Execution of Land Access Agreement to follow subject to legal due diligence which is near complete
• Drilling contract and service agreements will be finalised on LAA
• Prabu-1 Prospect target potential up to 59mmbbl or 340Bcf gas
Quest Petroleum NL (ASX:QPN) is pleased to advise that it has signed a Memorandum of Understanding (MOU) to
purchase the land which will be utilised for the first well to be drilled at the Company’s Ranau PSC in South Sumatra,
Indonesia (refer Figure 1).
Following protracted negotiations the MOU was executed with the owners of land situated at Way Kanan, which is in
the south east portion of the Ranau PSC, approximately 140 kilometres north-west of the South Sumatran capital,
Lampung. In parallel to the land negotiation process, which successfully concluded with the signing of the MOU, the
Company has for several weeks been engaged in legal due diligence to confirm tenure of the site and expects to
conclude this process imminently, which will facilitate the final land access agreement being signed.
The proposed Prabu -1 drill site (formerly Kayumanis-1), is situated on well drained, elevated land adjacent to a paved
asphalt road which allows good access to for drilling and completion operations. The drill site is situated on the edge of
an identified structural high proximate to three significant sub-basins with clear potential for hydrocarbon generation.
The Prabu-1 Prospect is one of 16 leads identified in the Ranau PSC with combined potential of up to 6Tcf gas and/or
300 mmbbl oil. This prospect is located approximately 10km south of the town of Baradatu in the Way Kanan jurisdiction
of Lampung Province, South Sumatra.
Negotiations have recommenced to finalise and execute the contract for the drilling rig. The Company will then also
expedite the finalisation of all third party service and materials contracts. A spud date will be advised in due course as all
necessary preparations are completed.
The Prabu -1 Prospect potential is estimated at up to 59mmbbl or 340Bcf gas. The target reservoirs for the drilling are in
the Baturaja Limestone and Talang Akar Sandstone Formations which are the most prolific oil and gas reservoirs in the
South Sumatra Basin. Operators in the surrounding PSC’s have reported initial flow rates of up to 3,000 BOPD from the
same formations as those hosting the Prabu-1 Prospect.
Based on the results of the Prabu-1 well, two further wells are planned in the initial drilling program