KUALA LUMPUR, Malaysia -- Malaysian energy group, M3nergy Berhad, has budgeted $50-$60 million for an exploration program targeting 300-400 MMboe on the onshore/offshore Ujung Kulon block in West Java, Indonesia.
M3nergy is expected to sign a formal production-sharing contract with the Indonesian Ministry of Energy and Mineral Resources in Jakarta later in March.
M3neregy's oil production split after cost recovery would be 25%, with 75% going to the Indonesian government. The gas split would be 40%, with 60% to the government.
Drilling for the three-year oil program and six-year gas program will depend on the results of seismic surveying as well as prospect leads from exploration drilling.