Triangle Energy (ASX: TEG) is planning to drill a sidetrack of the A2 well at the Pase production sharing contract in Aceh, North Sumatra, as it works towards renewing its production sharing contract.
While the company had originally intended to reperforate the well to establish oil and gas flow in line with observed production of 20 million cubic feet of gas during initial drill stem tests.
However, further analysis concluded that a sidetrack targeting an updip location in the reservoir might be commercially more attractive.
Triangle has also studied other infill drilling opportunities to access up-dip gas adjacent to existing
producing wells and has identified a number of targets for drilling in 2013.
The review of all target areas will be conducted with Indonesian upstream regulator BP Migas in May with the intent of firming up a multi-well drilling program for 2013.
Meanwhile, the company has executed an exclusive memorandum of understanding with PT Investa Aceh outlining the terms for future management and operation of the Pase working area.
The company is working on a renewal of the 922 square kilometre Pase PSC, which expired on 23 February 2012, though the company was granted a 6 month term to continue working on the PSC while a decision is made on the renewal.
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