Geneat,
The block Tracer is sitting on was held in private reserve by Pertamina, until Tracer wrestled it away from them. This is one of the strengths of the company. The company proved with it's last well that oil has indeed migrated through this block. The geology is very difficult, and more seismic is needed and planned. Steve Jacobs, in his interview with the Wall Street Transcript, has said that this block has some of the best potential he has seen in his sixteen years in Indonesia. He states that the company believes that there is 7 billion barrells somewhere in the panhandle sector, that is left to be found.
"What I do know is that the basin to the south of us generated 60 to 70 billion barrells of oil during it's time, of which only 700 million has been found. You assume a 90% loss and thats very conservative, losses from migration, losses to surface and other losses. That would leave 7 billion barrells to be found. So far, since the start of time,theres only been one complex of oilfields found, to the south by the Dutch in the 1930's, without the benefit of modern seismic. That was the last of the easy ones in this area, and it was 700 million barrells. There are still 6 billion barrells, and thats only from one basin. We've just proven with our Ngurit gas discovery in the north that we are also sourced out of 2 other basins. One of which is the massive Kutei basin which further onto the East in the Manakham delta area is where Total, Vico, and Unocal are producing billions and billions of barrels, and trilions and trillions of cubic feet of gas to the Bontang LNG Complex.
In our gas discovery to the north, which was about 50 bcf in size, the geochemistry has proven that these hydrocarbons were sourced out of the same basin. That's the first time this understanding has appeared. Further to that, we have seeps spread over a large area of the block, so we know theres been migration throughout the block.....
Steve Jacobs in the Wall Street Transcript
Why did the WST transcript interview him? He has a reputation and it is shining. BTW, the WST is a high powered and expensive letter
($175.00 per issue) that all the brokerage houses get. If you can get a copy, read it, it was published in January, 1997.
Pete |
