MedcoEnergi is very pleased to announce a successful completion of the 1^st appraisal well drilling in Libya Area 47 drilled after Libya Revolution, from a series of appraisal wells drilling program intended to confirm the extent of 10 structures out of 16 structures discovered during pre-Revolution. As previously announced, MedcoEnergi and its partners are proceeding with the development project for six discovered structures. This 1^st post-Revolution drilling of appraisal well, named P2 of P structure, has encountered two hydrocarbon-bearing zones with a total net pay of 26 feet at Top Lower Acacus and Mamuniyat formations. The P2 well testing conducted at Mamuniyat formation resulted in a gas flow of 6.5 MMSCFD through a 48/64-inch choke. Furthermore, based on the information obtained from this P2 appraisal well, it is highly likely that this P structure is in connection with the H structure that was discovered through exploration well H1 drilled in 2008.

This P-H structure connection resulted in estimated unrisked mean recoverable resources at about 69 MMBOE. Combined with the Top Lower Acacus formation, the recoverable resources can increase to 93 MMBOE, with an upside potential up to 149 MMBOE.

Additionally, MedcoEnergi has successfully completed the 2^nd and 3^rd appraisal well drillings (A2 and O2 wells) within the planned budget and schedule. The A2 well was spudded-in on 2 April 2014 and reached total depth of 10,600 ft in less than 40 days with strong indications of hydrocarbon presence and the well test is now being prepared. The O2 well was spudded-in on 23 May 2014 and reached the target depth of 10,780 ft of Mamuniyat formation in only 34 days.

Currently MIVL is utilizing one drilling rig and one completion rig, employing around 128 people at site with no LTI since the beginning of the field operations. In 2014-2015, MIVL, together with its partner LIA (Libya Investment Authority) plans to drill for seven more appraisal wells. The Company’s drilling team has demonstrated cost-efficient drilling operation even within this politically-dynamic period of Libya. Total drilling cost for reaching nearly 11,000 ft of those three appraisal wells was below US$ 9 million per well. 

The appraisal program done by MedcoEnergi in Libya Area 47 has again proved the prolific nature of Ghadames Basin (that extended within three countries, from Algeria to Tunisia to Libya). It is with a great pleasure to mention that the majority of area of Storm Ventures International portfolio in Tunisia, which was just purchased by MedcoEnergy from Chinook Energy, lies in the same Ghadames Basin.

Lukman Mahfoedz, President Director & CEO MedcoEnergi, cited “Alhamdulillah (thanks to the God), we were not only able to resume field operations in Area 47 Libya, but also made great success in appraisal well drilling program. I am very enthusiastic with this success as it would add more oil and gas reserves to the Company from the Libya asset. It also demonstrates our strong capability in running E&P operations in overseas, not only in technical capability but also in operation excellence and safety record at site.” Lukman also added that “The development of the Company’s major project in Libya is also progressing very well.  Nafusah Oil Operations B.V, as the Operator of the development project, is currently working on FEED (Front-End Engineering Design) conducted by the Consortium of Taknia Libya Engineering Company (Libya) and Foster Wheeler (UK), for the Phase-1 development of 50,000 BOPD and 50 MMSCFD of oil and gas producing facilities. The facilities will monetize around 250 MMBOE discovered reserves and is slated for its completion in 2017.”