Aabar drills second successful appraisal well at Sebuku gas prospect in Indonesia - UAE

(MENAFN Press) Aabar Petroleum Investments Company PJSC ("Aabar") announces it has completed drilling and testing operations on the Makassar Straits-3 ("MS-3") appraisal well in the Sebuku Production Sharing Contract ("PSC") offshore east Kalimantan, Indonesia.

The MS-3 well was drilled to a total depth of 5,000 feet and encountered 122.5 feet of net gas pay over a gross pay interval of 260 feet. Under testing, the well flowed at a rate of 39.2 million cubic feet per day ("mmcfd") through a 96/64 inch choke. The gas stream comprised mostly methane with less than 0.5% carbon dioxide and minimal condensate.

The maximum gas rate was constrained by the available test equipment.

On 2 May 2007, Aabar announced the results of the Makassar Straits-4 ("MS-4") appraisal well, which was drilled to a total depth of 5,367 feet and encountered 318 feet of gross gas pay and 279 feet of net gas pay in a single reservoir pay zone.

A total gas column of 618 feet was proven based on the results of MS-4 and the earlier Makassar Straits-1 ("MS-1") well.

Two drill stem tests were conducted on MS-4 and flowed at a combined rate of 39 mmcfd.

"This is another encouraging test result confirming that the Upper Berai carbonate has excellent reservoir characteristics over a wide area. We will spend the next few weeks analysing the results of the two latest appraisal wells along with the two earlier wells with a view to submitting a plan of development to the Indonesian authorities during the third quarter," said Chris Gibson-Robinson, Aabar's Vice President Operations & New Business Development (Southeast Asia).

MS-3 is the third appraisal well drilled by Aabar on Ashland Petroleum's 1974 MS -1 gas discovery and was located 1.65 km south of the original MS-1 well and 2.62 km southeast of MS-4.

The MS-3 well will be plugged and abandoned and the drillship Frontier Duchess will be released.

The Sebuku PSC covers 5,920 sq. km. Aabar, through its wholly owned subsidiary, PearlOil (Sebuku) Limited ("Pearl Sebuku"), is operator of the Sebuku PSC and holds 50% participating interest.

Subject to the approval of the Indonesian government and oil and gas regulator, Pearl Sebuku will hold 100% participating interest in the Sebuku PSC as it has acquired the remaining 50% from its former joint venture partner.

Background

Aabar is an oil and gas exploration, production and drilling company headquartered in Abu Dhabi and is a public joint stock company listed on the Abu Dhabi Securities Market.

Aabar has two divisions, Dalma Energy, which is focused on drilling operations, and Pearl Energy, which is engaged in exploration and production in Southeast Asia. Aabar's net working interest production stands at more 20,000 barrels of oil per day from four fields in Indonesia and Thailand. The group plans to drill 10-15 exploration wells in 2007.