home > asset

Background

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 or the Company). NSE holds a 100% interest in the PSC, and is the Operator.

The North Sokang PSC is situated in shallow water in the proven gas generating basin of the East Natuna Sea adjacent to the Sokang PSC. The North Sokang PSC was the site of a two-well (Dara 1&2) gas discovery in 2000, which was subsequently relinquished due to low gas prices and a lack of infrastructure at the time.

BPE management initially acquired the North Sokang PSC along with the Sokang PSC due to the existence of proven by-passed gas and the availability to supply gas at US$6 or higher to: (a) the Singapore and Batam gas markets via a new build East Natuna pipeline with a tie-in to the West Natuna Transportation System (WNTS) or, (b) International LNG market via an FLNG facility, or (c) the Indonesian domestic gas market via a new build pipeline to Natuna Island, or (d) the Vietnam gas market via a new build pipeline with a tie-in at the Red Emperor infrastructure or (e) eventually be tied into the Natuna D Alpha project.

 

Seismic, Drilling & Other Activities

5,456 km of 2D seismic over the PSC and 1,562 km2 of 3D seismic over the Dara East Structure has been acquired, processed and interpreted by the Company.

In November 2012, the Company completed two exploration wells in its North Sokang PSC. 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 6 meters. A gas sample of 1.3% CO2 was recovered from one of the Upper Pliocene sands. The Dara 4 well was not tested.

 

seismic

 

3rd Party Gas Resources Assessment

Dara East Assessed Gas Resource

BPE recently updated its Third Party resource assessment for the discovered Dara East Gas Field. Third Party, LR Senergy, assessed the P50 GIIP volume for the Dara East Gas Field at 1,495 Bscf. The LR Senergy assessment is based on an in depth review of the data from the Dara-1 and Dara-3 wells to investigate additional gas bearing reservoirs, a re-evaluation of existing 3D seismic, including reprocessing and re-interpretation of select seismic lines and detailed review of all well data associated with the offshore East Natuna basin.

The gas encountered in the Dara East Gas Field is found in fine grained Pliocene sands deposited in a shallow marine environment at between 800 - 1800 mMD. In 2000, Total drilled the Dara-1 well, which encountered gas bearing sands in the Upper and Lower Pliocene. In 2012, BPE drilled the successful Dara-3 well, which confirmed low CO2 gas in the Upper Pliocene and established commercial flow rates. The Dara-1 and -3 wells encountered a fine grained clastic reservoir containing gas at the primary Upper Pliocene (UP) 1A sand level. The UP-1A sands contain a significant proportion of the Gas Initially-In-Place (GIIP) and are essentially a coarsening upwards section, consistent with an offshore bar or dune. The GIIPs for the individual Dara East Gas Field reservoirs, reported in Billions of standard cubic feet of gas (Bscf), are presented below.

LR Senergy assessed the recoverable portion of the GIIP volumes based on preliminary development plans, reservoir rock and fluid characteristics and deliverability of the reservoirs to the planned wellbores. The ranges of Technical Recoverable Volumes (TRV) are presented below.

The inert content of the gas to be developed varies between sands from 1-12% CO2 and 0-9% N2.  The Dara East gas resource is a dry gas and contains no known liquids based on testing. The average produced gas composition is reasonably constant with approximately 5% CO2 and 5% N2. The above resources do not include the potential of any undrilled or untested reservoirs in the existing Dara East Gas Field or potential resources in the adjoining Dara North/Northeast and Dara West features.

Additional Assessed Resources Upside in Dara East, Dara North/Northeast and Dara West

The Dara East Gas Field area contains additional exploration potential in undrilled reservoirs.  LR Senergy has assessed the upside potential of these Pleistocene (PL), Upper Pliocene (UP) and Lower Pliocene (LP) objectives and have determined the GIIP volumes for them.  

Volumes have been assessed probabilistically; applying the observed ranges in area and estimations regarding the pay thickness, porosity, gas saturation and gas expansion factor.  Presently, as these objectives have not been drilled, the volumes would include the unknown proportions of any non-hydrocarbon gas (i.e. CO2, N2).

Dara East Upside

The results from the LR Senergy assessment are presented in the table below.

 

Additional exploration potential has been assessed for Dara North/Northeast and Dara West areas by LR Senergy.

Volumes have been assessed probabilistically; applying the observed ranges in area and estimations regarding the pay thickness, porosity, gas saturation and gas expansion factor.  Presently, as these objectives have not been drilled, the volumes would include the unknown proportions of any non-hydrocarbon gas (i.e. CO2, N2).

Dara West Upside

The results from the LR Senergy assessment are presented in the below table.

Dara North/Northeast Upside

The results from the LR Senergy assessment are presented in the below table. 

The Company plans to drill 1 or 2 more appraisal wells in the Dara East Gas Field as part of any future development plan.

The Dara East Near Field and Outside Dara East Structure resources are expected to be the subject of a future exploration program.

Preliminary Plans of Development (PPOD)

Drilling Engineering

The Dara East Gas Field Phase-1 PPOD is to drill and complete four (4) subsea wells, and twelve (12) wells from four (4) well head platforms, targeting the UP-1A and LP-6 reservoirs.  The wells have directional -horizontal profiles targeting 500m reservoir penetration with casing schemes designed for a 3 ½” completion as the base case. Secondary targets exist in the UP 3 & UP 4 which we be flowed from the LP-6 wells as a later life contribution to production.

 

Field Design

 

Facilities Engineering

The Dara East Gas Field is located in 110m of water some 190km East of Natuna Island, which is the nearest landfall to be used as a shore base and for support facilities.  The PPOD concept includes a central Floating Processing Unit (FPU) and satellite Wellhead Platforms (WHPs).  The produced gas would be exported via a new built 360km pipeline (developed outside the PSC regime) for tie-in to the West Natuna Transport System (WNTS).  The main elements of the proposed Dara East Gas Field facilities are:

  • A total of 23 wells;
    • 18 off platform wells
    • 5 off Subsea tie-back wells
  • 6 normally unmanned Well Head Platforms;
  • Infield flowlines and umbilicals;
  • Central Processing FPU (owned and operated by others); and
  • Tie-in to main Export Trunkline to WNTS (owned and operated by others)

An alternative development concept exists which involves replacing the FPU and pipeline with a FLNG facility (owned and operated by others).

Dara East Development Video

FLNG Facility

The Company has also completed a Conceptual Design for a FLNG facility with two leading midstream LNG companies utilizing a converted LNG tanker and a proven or proprietary liquefaction technology.

gas market

 

 

Pipeline Options 

The Company has completed pipeline assessments for: (1) a pipeline tie-in to the West Natuna Transportation System, (2) a new build pipeline to East Natuna Island, (3) a pipeline tie-in to Vietnam (Red Emperor facilities), and (4) a pipeline tie-in to Natuna D Alpha project:

Tuna Development

Gas Markets and Prices

Wood Mackenzie (“WoodMac”) completed a study in November 2017 for the Company entitled “East Natuna Gas Monetization Study”.

WoodMac identified four “Tier 1” gas monetisation options for Dara East Gas which are:

  • Singapore pipeline gas sales into power and industry segments;
  • Batam pipeline gas sales into power and industry segments (2 options);
  • FLNG long-term LNG sales to Asia-Pacific

A gas marketing opportunity may also exist to swap piped gas for LNG in Singapore.

WoodMac’s study concludes that there is a market for East Natuna gas in Singapore, Indonesia and Internationally. The gas can be sold at a price attractive enough to support a Dara East development at expected international piped gas and domestic prices (provided by the new Government of Indonesian domestic regulation) or international LNG prices. 

 

Analog to an East Dara Gas Field Development-AB field in the Netherlands

Analog to an East Dara Gas Field Development_AB field in the Netherlands