West Kambuna-1, an exploration well which was drilled late last year, is located in the Asahan Offshore Production Sharing Contract (Matrix 75%) offshore in the North Sumatra Basin of Indonesia. Matrix reported intersecting gas bearing sandstones in the primary target Belumai Formation, which were cased off and drill-stem tested over the interval between 2,275m and 2,293m.

"Given the shows and porosities recorded and the electric log analysis that indicated gas pay, it was unusual that the test failed to flow hydrocarbons," Matrix said. The company said the drill-stem test indicated either a lack of permeability in the section or was the result of damage caused to the formation by the drilling fluids.

Matrix said that it was continuing its analysis to understand the lack of permeability in the reservoir as well as engineering studies to determine if techniques are available to stimulate such low permeability gas reservoirs to unlock the large gas accumulation at West Kambuna/ Kambuna.

The West Kambuna well is located 3.5km south west of the Kambuna-1 discovery that has been tested at 14 million cubic feet of gas plus 990 barrels of condensate per day. The company has suspended the West Kambuna-1 well, however added it can be easily re-entered, which it was planning for the middle of the year.