MedcoEnergi has made a gas discovery in Matang-1 exploration well, Block A PSC in East Aceh Regency, Aceh province. A Drill Stem Test (DST) to prove up the gas reserves from the Bampo Limestone formation is currently underway and is expected to be completed in the next week.

The Matang-1 well, which has been drilled to a depth of 7,893 feet TVD, penetrated a gross gas column in the Upper Bampo Limestone formation (the primary reservoir target) of at least 90 feet. The base of the gas column has not been encountered. From the initial result of the test, the well is flowing 25 MMSCFD through a 52/64 inch choke with a low H2S content, approximately 15% CO2.

The Block A PSC block was acquired by the Company in 2007. The Company is the operator of the block with a participating interest of 41.67%, with partners Premier Oil (41.67%) and Japex (16.66%). In 2010 MedcoEnergi successfully obtained the PSC contract extension until 2031. The Matang-1 well is the first exploration well drilled since 1997 in the Aceh province.

Lukman Mahfoedz, President Director & CEO of MedcoEnergi commented “We are very pleased with the current result of the Matang-1 exploration well. This is in line with our strategy to perform high-grade exploration activities to add oil and gas reserves and to increase the reserve life index of the Company.” Lukman added that “We’d like to convey our appreciation to all stakeholders, especially the local government and community for their support in completing this exploration well.”