Project Profile
Location: Onshore South Sumatra, Indonesia
Area: 2,191 sq km
Start-up Year: -
In July 2011 Quest entered into an agreement to acquire Merric Capital Pty Ltd, which held an 80% interest in the onshore Ranau oil and gas exploration prospect in South Sumatra, Indonesia through its subsidiary PrabuEnergy Pty Ltd. Merric had spent the past 3 years developing a highly experienced oil and gas management team to focus on developing large onshore oil and gas exploration projects in Indonesia and specifically South Sumatra. In November 2011 Quest announced that the Indonesian Government had formally awarded the Ranau Production Sharing Contract (PSC) to PrabuEnergy. The formal award of the Ranau PSC satisfied the final condition precedent of the agreement between Quest and Merric and the acquisition was completed in late November 2011.
In September 2010 PrabuEnergy was awarded the Ranau Joint Study which was conducted by PrabuEnergy in conjunction with the Directorate General, Oil and Gas and the geological department of Trisakti University in Jakarta. The Joint Study process in Indonesia allowed PrabuEnergy an exclusive period to complete a technical study over the Ranau area, which was completed in March 2011. Following the formal award of the Ranau PSC in November 2011, Quest is expediting an exploration program commencing with the drilling of priority exploration wells. The Ranau Joint Study has prioritised the drilling of three leads located within the Jaya sub-Basin. It is expected that Quest will contract for a 3 well program aimed at testing the Komering Lead plus the Sawatand Tabat leads.
A successful exploration program would lead to the first production of gas and/or oil under the terms of the PSC. The company is optimistic about the exploration and production potential of the Ranau PSC as it contains extensions of proven Sub-basins of the prolific onshore South Sumatra Basin. These Sub-Basins contain several large scale structures within the Ranau PSC which were identified by gravity data during the joint study. Several of these structures have the potential to contain multi-Tcf gas fields.
The Ranau Joint study confirmed the Ranau PSC contains four new, under explored sub-Basins that form a significant extension of the prolific South Sumatra Basin. The study also delineated four structural leads within the Jaya and Ratu sub-Basins of which three have been prioritised for testing in the upcoming drill program. The study was conducted to define the subsurface configuration of the Ranau area of South Sumatra basin and to identify its tectonic history, evolution and to more fully understand their petroleum system, source potential, reservoir and structural trap integrity. The study integrated geophysical, geological and geochemical data from within and around the 2,191km2 Ranau PSC. This data was obtained from the Patra Nusa Data (PND), the main technical data repository in Indonesia.
As part of the study work program, Trisakti University also collected closely spaced gravity data at 722 recording stations in the Ranau PSC with the objective of defining these sub-basins (grabens) and to identify leads for drilling. A detailed geological model was developed from the data collected using the latest Geosoft modeling software. Several highly prospective leads were defined and the company intends to drill three initial wells, with drilling intended to commence prior to 30 June 2012, subject to required approvals.
Operators:
PT Tosec World (subsidiary of PT Tech Oil International): Operator with 80% interest
Other: 20% interest