The North Makassar and North Ganal PSC's are situated in the heart of the highly prospective deepwater Kutai basin, adjacent to proven fields with similar play elements. Makassar's deepwater trend is basinward of the prolific Mahakam Delta province which hosts in excess of 50 Tcf and 5 billion barrels of oil and gas reserves (see location map below).
North Ganal PSC
The North Ganal PSC was signed on 21 November 2011 by North Ganal Energy Ltd, a wholly owned subsidiary of BPE. NSE holds a 20% interest in PSC, with Statoil 19%, Niko 31%, ENI 20% (operator) and GDF Suez 10%, each holding a respective interest.
In the 3rd quarter 2012, one exploration well (Lebah-1) was drilled in the North Ganal PSC by ENI as operator. This was the first of two largely carried wells to be drilled in the North Ganal Block. The Lebah-1 well targeted a series of Upper Miocene - Pliocene deep water channel sands analogous to those found in nearby discoveries by ENI and partners. Although Lebah drilled over 800' of reservoir quality sands distributed over a number of intervals only one of the sands was hydrocarbon bearing. The Upper Miocene 11,500' sand has 12' of gas at the top of a 41' gross sand interval. The well was plugged and abandoned as a gas discovery. Further interpretation of the newly reprocessed seismic data by ENI, integrating the results from Lebah-1, will allow the Joint Venture Partners to evaluate the updip resource potential of the 11,500’ and other sands. Additional possible drilling locations have also been identified within this depositional trend.
The second largely carried well in the North Ganal block will likely be targeting the significant resource potential of deeper Middle Miocene sands which will likely be drilled in 2014.
North Makassar PSC
The North Makassar PSC was signed on 30 November 2009 by Baruna Nusantara Energy Ltd (BNE), a wholly owned subsidiary of Black Platinum Energy Ltd (BPE). BNE holds a 30% interest in the PSC, Statoil ASA holds 40%, and Niko Resources Ltd holds 30% and is the operator. Niko is a deepwater expert and one of the leading explorers in Indonesia, and Statoil is a proven world class E&P company with significant deepwater experience.
One largely carried exploration well in the North Makassar PSC is planned in April 2013.
Location Map of North Ganal and North Makassar PSC's
Current deepwater developments include the Jangkrik, Gehem, Gendang, Gendalo, and Maha fields, which are all planned to be tied into existing infrastructure and the Bontang LNG plant. New LNG contracts are indexed to oil price and the domestic market is also robust, supporting gas prices in excess of $6/mcf. Gas from BPE's Makassar Straits assets could supply the Bontang LNG plant and the local domestic market.