North Sokang PSC and Sokang PSC
The North Sokang PSC was signed on 26 November 2010 by North Sokang Energy Ltd (NSE), a wholly owned subsidiary of Black Platinum Energy Ltd (BPE). NSE holds a 100% interest in the PSC , and is the operator. The Sokang PSC was signed on 17 December 2010 by Black Platinum Investments Ltd (BPI), a wholly owned subsidiary of BPE. BPI holds a 100% interest in the PSC, and is the operator.
East Natuna Pipeline Infrastructure and Development Concept
North Sokang and Sokang are situated in shallow water in the proven gas generating basin of the East Natuna Sea. North Sokang was the site of a two-well gas discovery in 2000, which was subsequently relinquished due to lack of infrastructure at the time. Since 2000, the West Natuna Transportation System (WNTS) has been built and feeds a robust Singapore gas market from the region, with gas pricing indexed to Brent crude. Gas from East Natuna could also supply the Indonesian domestic market in Batam, the Bintulu LNG plant in Sarawak, or eventually be tied into the Natuna D Alpha project.
The Company acquired 1,600 kms of new 2D seismic in these blocks in early 2012.
In November 2012, Black Platinum Energy’s wholly-owned subsidiary, North Sokang Energy Ltd., completed two exploration wells in its North Sokang PSC, located in the East Natuna Sea. Both wells - Dara 3 & 4 - targeted the Upper Pliocene sands and were plugged and abandoned as gas discoveries.
The Dara 3 well was drilled to a depth of 970 meters and intersected net gas pay of 18 meters. Dara 3 was successfully flow tested at a rate of 9 mmscf/d with 1.9% CO2 and no water. The nearby Dara 4 well was drilled to a depth of 770 meters and intersected net gas pay of 5 meters. A gas sample of 1.3% CO2 was recovered from one of the Upper Pliocene sands. The Dara 4 well was not tested.
An exploration well is planned for the Sokang PSC in late 2013 or early 2014.
Both the North Sokang and Sokang PSC's contain multiple exploration leads and prospects containing an additional 1 to 2 TCF in resources (excluding the Dara structure) which are expected to be the subject of an ongoing exploration program in 2013 and beyond.