We identified an onshore open area of 3,970 km2 (or 981,008 acres) in the province of West Java, adjacent to our Citarum block. We believe that this area, also known as the Rangkas Area, holds large amounts of crude oil due to its proven petroleum system and location on the Northwest
To confirm the potential of Rangkas Area, we entered into a Joint Study program with the Indonesian Government to identify the stratigraphy and structural geology of the area, perform a basin analysis and assess the petroleum system of the area with the objective of determining its oil and gas potential.
Reports, including data from four wells drilled pre-World War II and two wells drilled in 1991, have already indicated the presence of hydrocarbon in the area with the discovery of several oil seeps and one gas seep, showing that the petroleum system in the area is indeed proven with the occurrence of Eocene-Oligocene-Miocene source, reservoir and seal rocks similar to adjacent major producing hydrocarbon areas in West Java. Also, a dozen prospects with individual closure area up to 3,700 acres have been identified with typical stacked reservoirs between 985ft and 6,500ft depth.
If the Joint Study produces satisfying results, a PSC contract for the Rangkas Area would potentially be available to us through a direct tender process.