In a statement Premier said, “Gajah Baru-2 was spudded on September 18th by Diamond Offshore’s Ocean Sovereign and was drilled to a target depth of 9,010 feet. The well encountered gas bearing Miocene reservoirs and gas in Oligocene sands. The top section of the well was drilled to a depth of 2,214 feet with 13 3/8' casing using a ‘casing-while-drilling’ technique, establishing a new world record for this method.”
“The results of this new well have exceeded pre-drill expectations and [we] estimate that recoverable reserves for the Gajah Baru field have increased to approximately 325 billion cubic feet, equivalent to 54 million barrels of oil,” it added.
According to Premier CEO Charles Jamieson, “This well has proved a larger recoverable gas volume on the block which gives us opportunities to optimize the future development of the West Natuna project and reduce costs, as well as increasing confidence of meeting additional gas demand in Singapore.” He was referring to the fact gas from West Natuna is sold to the Island Republic under a 27-year gas sales contract.
Premier is the operator of Block A and holds a 28.67% interest. Its partners are Kufpec (33.33%), Amerada Hess (23%) and Petronas (15%).
