Peak Oil & Gas (ASX: PKO) has used new mapping and a prospectivity review to identify 'high potential leads' with aggregate unrisked mean Prospective Resource of 738.5 BCF gas and 63.8 MMBBLS oil and condensate in North Sumatra, at South Black A (SBA).
Seismic operations commenced to mature six oil and gas leads to drillable status prior to drilling of first exploration well early next year.
Highlighting the prospectivity of the area, the North Sumatra Basin contains proven hydrocarbons with gas and oil flows from old wells. Previous exploration focussed on shallow oil with little interest in gas.
A significant new gas discovery (Matang-1) across block boundary flowed 25 MMCFD. SBA is located close to key infrastructure such as pipelines and facilities.
Peak Oil's partners in SBA are:
- 51% REE (Operator): Peak Oil controls REE, the Operator and 51% interest holder in SBA (net to Peak 38.25%, earning via farm-in).
- 35% KRX Energy: Earning through farm-in to PT Prosys Oil & Gas who are carried through the first 3 years work program (up to expenditure cap). KRX Energy has been funded by Lion Energy, an ASX listed company.
- 14% PT Prosys Oil & Gas: Carried through the first 3 years work program.
During the March 2013 quarter Peak Oil executed a placement to the Albers Group for a two-part subscription for shares and options resulting in the raising of $3 million.
Tranche 1 was completed during the quarter resulting in the company raising $1.14 million, with Tranche 2 completed in early April 2013.
The Albers Group is headed up by Geoffrey Albers who has over 35 years’ experience in the upstream oil and gas sector, having been involved in ASX listed companies Cue Energy, MEO Australia and Octanex NL.
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