betun-selo-kso-map

 

Andalas has entered into an operating services and option agreement (“Services Agreement”) with PT Petroenim Betun-Selo (PBS), the operator of the Betun-Selo KSO in Sumatra, Indonesia.

The Betun-Selo KSO comprises the producing Betun field and the non-producing Selo field.

  • Under the Services Agreement, Andalas is to undertake a 4-well workover programme on the Betun field that will allow it to earn 90% of the proceeds of the sales of cost hydrocarbons and profit hydrocarbons derived from incremental production at the KSO until such time as the funds and services provided by ADL have been repaid in full.
  • Betun currently produces 70 bopd. The Work Programme targets increasing production by an incremental 80 bopd to a total of 150 bopd
  • Selo is currently non-producing but has the resources set out below and up to 5 drilling locations
  • Andalas has an option to acquire a participating interest in the Betun-Selo KSO which has scope for further development

 

betun-structure-map

 

The Betun-Selo KSO is estimated to contain the following gross resources:

table-batun-selo-kso

The Betun-Selo KSO was awarded to PBS by Pertamina in June 2012 and has 8 years remaining in the 15 year term.

The Betun-Selo KSO is made up of two fields – the Betun field and the Selo field. Both fields are located in South Sumatra. The Betun field is approximately 30 km NNW of Prabamuhlih, and the Selo field is some 60 km WNW of Prabamulih.

The Betun Field was discovered in 1949. Field development started in 1950 with the last well (BTN-18) being drilled in 1986. The field was abandoned by Pertamina and picked up as a KSO in 2012 by PBS. The principal producing targets are the Talang Akar formation and the Batu Raja formation at depths of between 1800 – 2000m. There are 4 producing wells (BTN 01, 03, 04, and 14); one suspended well BTN 17 (a possible gas producer for fuel gas); and, one water disposal well, BTN 5 (with a second possible injector BTN 18). Currently, BTN 03 is shut in pending workover by ADL. The Work Programme is anticipated to consist of work over of wells BTN 01, 03, 04 and 14. The KSO operator performed a 3D seismic over Betun in 2015. While further drilling on Betun in the near future is not anticipated, recent analysis of the 3D data suggests additional drilling may be possible at some future point in time.

The Betun wells are all on artificial lift – sucker rod tubing pumps with beam pumping units. Oil production is currently in the order of 70 bopd. The wells produce to a basic production facility consisting of: an inlet manifold, a 5000 bfpd three phase separator; a tank farm with one 500 bbl vertical storage tank, one 300 bbl horizontal storage tank, and one 500 bbl shipping tank); water treatment/injection pumps; and an oil shipping custody transfer facility. Production is shipped to the Pertamina EP Adera field through a 4” trunkline.

The Selo field was discovered in 1936 and developed through 1940. The last well drilled, Selo-20, was drilled in 1959. The wells drilled targeted and produced from the Talang Akar formation. However, the Talang Akar horizon is considerably more shallow in Selo than Betun with targets in the 800 – 900m range. Currently there are no wellbores accessible for workover/production, and no production facilities in the Selo field. The field has been essentially abandoned. However, analysis of recent passive seismic work as well as reprocessing and analysis of 2D seismic have indicated targets in the Lower Talang Akar and Basement suitable for drilling.