The Company entered Indonesia in 2017 by acquiring non-operated 23% interests in the Perlak field. The field is located in an established hydrocarbon province of Aceh, Northern Sumatra and covers an area of 10.4 km2.
The field is one of the oldest producing oilfields in the world, first discovered in 1899. It lies on-trend with many producing hydrocarbon fields, including the giant Arun field.
The Perlak field was produced primarily in the period up to the early 1940s from the crestal part of the structure. Over 300 wells have been drilled to date, with 250 of those put into production. The field has produced approximately 50 mmbbls from shallow depths of less than 1,000 metres (3,300 feet). The oil is very light with average API of 45-50 degrees. The average recovery factor of the developed area to date is estimated at 36%.
The field was shut-in during World War II and there has been limited activity carried out since that time, mainly by smaller local operators. Eleven wells had been drilled on the field since 1970s. Two of the more recent wells drilled in 2011 were put into production of 180 and 100 bopd, respectively, producing high quality oil 53 degrees API. The field benefits from 2D and 3D seismic which has been obtained by previous operators.
Following extensive efforts by the Company to find a suitable purchaser for its non-operated 23% interest in the Indonesia project, the Directors made a decision to no longer pursue the sale opportunities and will now focus on relinquishing any interests in the project.