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  • Quest Petroleum Closer To Spudding Indonesian Oil And Gas Well 0 comments
    Apr 7, 2013 10:49 PM

    Quest Petroleum (ASX: QPN) is progressing drilling of its Prabu-1 exploration well in South Sumatra, Indonesia, after signing a Memorandum of Understanding to purchase land for the drill site.

    The MOU was executed with the owners of land situated at Way Kanan, which is in the southeast portion of the Ranau Production Sharing Contract.

    In parallel to the land negotiation process, Quest has for several weeks been engaged in legal due diligence to confirm tenure of the site and expects to conclude this process imminently.

    This will facilitate the final land access agreement being signed.

    "After a prolonged process we are very pleased to have signed a formal agreement with the landowner and are now in position to sign the land access agreement, pending legal sign off," Quest managing director Anthony Milewski.

    "We appreciate the patience of our shareholders over the past months and it is pleasing to now have visibility of the commencement of drilling at this highly prospective location."

    Negotiations have recommenced to finalise and execute the contract for the drilling rig. The company will then also expedite the finalisation of all third party service and materials contracts. A spud date will be advised in due course as all necessary preparations are completed.

    Prabu

    The proposed Prabu -1 drill site is situated on well drained, elevated land adjacent to a paved asphalt road which allows good access to for drilling and completion operations.

    It is located on the edge of an identified structural high proximate to three significant sub-basins with clear potential for hydrocarbon generation.

    The Prabu-1 prospect is estimated to up to 59 million barrels (MMbbl) or 340 billion cubic feet (Bcf) of gas in the target Baturaja Limestone and Talang Akar Sandstone Formations, which are the most prolific oil and gas reservoirs in the South Sumatra Basin.

    Operators in the surrounding PSC's have reported initial flow rates of up to 3,000 barrels per day of oil from the same formations as those hosting the Prabu-1 Prospect.

    It is one of 16 leads identified in the Ranau PSC with combined potential of up to 6 trillion cubic feet of gas and/or 300 million barrels of oil.

    Based on the results of the Prabu-1 well, two further wells are planned in the initial drilling program.

    Prabu-1 is located about 10 kilometres south of Baradatu town in the Way Kanan jurisdiction of Lampung Province, South Sumatra.

    Quest had $5.5 million in cash as of 31 December 2012.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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