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Lengo-2 drill stem test achieves 21.2 mmscf/d

Written by  AWE - press release Tuesday, 14 May 2013 15:52

Lengo-2 drill stem test achieves 21.2 mmscf/d

AWE Limited (ASX: AWE) reports that a second successful Drill Stem Test (DST) has been conducted at the Lengo-2 appraisal well, offshore Indonesia, achieving a maximum gas flow rate of 21.2 million standard cubic feet per day (mmscf/d).

Two further cores have been cut in the Kujung I reservoir from 757m to 784m (2,485 to 2,571 ft) recovering an estimated 24m (79ft) of carbonate Kujung I reservoir formation. A wireline logging program was then completed successfully and subsequently a DST has been conducted over the entire Kujung I formation interval intersected to date from 736m to 784m (2,415 ft to 2,571 ft). This interval flowed gas at a maximum rate of 21.2 mmscf/d. Gas samples were collected and the final results of the compositional analysis for both DSTs is expected in coming weeks. Preliminary results for DST1 indicate a gas composition of Methane 66%, Carbon Dioxide 10%, Nitrogen 21%, and other hydrocarbon gases 3%. These results are similar to the gas composition encountered from tests at Lengo-1.

These latest test results, which are in line with pre-drill expectations, complement the first DST and together will provide the necessary data for analysis and evaluation of the reservoir quality and productivity potential of the upper section of the Kujung I formation and the overall Kujung I carbonate sequence.

AWE’s Managing Director, Mr Bruce Clement, said “Production testing at Lengo-2 has been a success. The maximum rate of 21.2 mmscf/d from the second drill stem test at the Lengo-2 well is a significant step up from the maximum rate of 12.8 mmscf/d achieved from the Lengo-1 well in 2008.

“The results from the two DSTs at Lengo-2, combined with the data we have previously acquired from the Lengo-1 well, will be used by the Joint Venture as the basis for evaluating the future commercial development potential of the Lengo field. The growing domestic energy market in East Java is an attractive destination for this gas resource, should it prove commercial,” Mr Clement said.

As at 0600 hours yesterday local East Java time (0900 hours Sydney), the Lengo-2 well was at a measured depth of 784m (2,571 ft), preparing to drill ahead to a total depth of approximately 828m (2,717 ft), tagging basement.

This will be followed by the final wireline logging program which represents the last step in the Lengo-2 appraisal well evaluation. On completion of the logging program, the well will be plugged and abandoned as planned.

The Joint Venture partners in the Bulu PSC are:

AWE Limited (via subsidiaries) 42.5%

KrisEnergy Satria Limited (Operator) 42.5%

PT. Satria Energindo 10.0%

PT. Satria Wijaya Kusuma 5.0%

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