Amerada makes first oil and gas find off Malaysia

Amerada Hess Malyasia Ltd. said Thursday that it had discovered oil and gas with its second exploration well on Block PM304 off Peninsular Malaysia. Cendor-1 was spudded in 63 m of water and encountered hydrocarbons at multiple levels. The well tested at a maximum rate of 2,840 b/d of 42�-gravity crude from a single zone.


LONDON, Mar. 23 -- Amerada Hess Malyasia Ltd. said Thursday that it had discovered oil and gas with its second exploration well on Block PM304 off Peninsular Malaysia.

Cendor-1 was spudded in 63 m of water and encountered hydrocarbons at multiple levels. The well was drilled to 1,790 m TD and tested at a maximum rate of 2,840 b/d of 42�-gravity crude from a single zone. Another selected zone, Amerada noted, had flowed gas at a stabilized rate better than 5 MMscf/d.

Howard Paver, managing director of Amerada's international business unit, said preliminary evaluation of the well results showed "a potentially commercial" oil accumulation, though further appraisal would be needed to flesh out its commercial viability.

"This early success off Malaysia represents our first operated exploration discovery in the region and is an exciting and important step forward in the development of our business in Southeast Asia," said Paver. "We will now focus on establishing the commercial viability of the discovery which lies close to existing infrastructure."

Amerada operates the block with a 65.5% interest. Other partners in the block are Petronas Carigali Sdn. Bhd., which holds 30%, and Petroleum Investment & Development Co., a wholly owned subsidiary of Petrovietnam, with 4.5%.

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