Dana Petroleum has completed two appraisal wells designed to test the western extension of the Ujung Pangkah field in the Pangkah Production Sharing Contract (PSC) area offshore East Java, Indonesia.

The company drilled the Ujung Pangkah North and Ujung Pangkah West appraisal wells 3 km and 5 km respectively from the nearest existing well, using the jackup drilling rigOcean Sovereign. Both wells encountered gas overlying oil in the Kujung limestone formation at 4,800 ft below sea level. The gas-oil contact and oil-water contact in the wells are both at a depth consistent with that observed in the previous wells drilled on the eastern part of the structure, indicating the discovery of a significant extension to the previously proven area of the Ujung Pangkah field.

The northern well encountered an oil column with a thickness of 77 ft underlying a gas column spanning 78 ft. Production testing of the oil zone resulted in a stabilized flow rate of 2,300 b/d. A separate test of the gas zone achieved a flow rate of 14.4 MMcf/d.

The western well encountered a similar section of oil-bearing limestone underlying a larger 117 ft gas column. Production testing of the oil zone in this well resulted in stabilized flow rates of 2,100 b/d and a separate test of the gas zone achieved a flow rate of 31.4 MMcf/d.

The data obtained from these two new wells will be analyzed to determine the likely increase in oil and gas reserves. The encouraging production tests of the oil and gas bearing zones within these wells will be used in assessing the feasibility of further development of the Ujung Pangkah reservoir.

"Following the positive production tests of oil and gas in both wells, the joint venture group has extended the rig contract to proceed immediately with the drilling of a well on the West Sidayu prospect, to the north of the Ujung Pangkah field, within the same PSC area," Tom Cross, Dana's CEO, said: "This third well in the program will explore an area west of the currently undeveloped Sidayu oil field, which was discovered by the Pangkah joint venture group in 2000."

08/11/04