Japanese exploration firm JX Nippon Oil & Gas Exploration's Malaysia subsidiary is planning two further exploration wells offshore Malaysia after confirming a deepwater oil discovery.
The Bestari-1 exploration well, the first drilled in Deepwater Block R (the Block), found 70m of oil bearing sands across multiple Miocene-aged formation horizons.
The Block, offshore Sabah, East Malaysia, covers 672sq km in 100-1400m water depth, in an area where the Kikeh and the Gumusut-Kakap oil fields were discovered.
Reservoir depth ranges from 1860-2702m below sea level and preliminary wireline evaluation highlighted good reservoir properties, said JX Nippon.
The firm's announcement confirm's Australia's Santos' 26 March announcement about the find. Santos said the oil bearing sands in the Bestari-1 well were of high quality with good porosity and permeability. Oil samples, recovered from wireline pressure and sampling tools, confirmed 27-30 degree API Oil with no indication of H2S and negligible CO2.
Santos completed the acquisition of a 20% interest in the Block R PSC from JX Nippon (27.5% and operator) and INPEX (27.5%) in January 2015. PETRONAS Carigali owns the remaining 25% interest.
The well is the first of three commitment wells in the Block production sharing agreement, operated by JX Nippon, which holds 27.5% interest. According to Santos, the next two wells in Block R will be Lawa-1 and then Menawan-1, also both in deep water.
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