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Sugih Energy Preparing PoD for commercialization of Lemang Block

JAKARTA (Rambu Energy) – PT Sugih Energy Tbk, a listed oil and gas company, said it is preparing Plan of Development (PoD) to kick off the commercial production of the Lemang Block. The PoD will be submitted to the SKK Migas for approval, however, no specific date was set for the PoD submission.

The company said in a statement to the Indonesian Stock Exchange that on May 1, 2015, PT Hexindo Gemilang Jaya, the opeator of Lemang Block, has discussed about the exploration status of the block with SKK Migas.

At the meeting, Hexindo gave presentation to SKK Migas about the latest progress of the exploration activities of the Akatara-Selong strucgture within the block. Hexindo presented the result of geology and geophysics study, petroleum system, drilling result as well, drilling test as well as the original-oil-in place (OOIP).

Based on the technical discussion, SKK Migas stated that it accepted the Hexindo’s presentation and told Hexindo to prepare Plan of Development to develop th eblock.

About Lemang PSC Block
The Lemang PSC block is located in Sumatra, a region with one of the highest success rates in the world for oil and gas exploration. The block is adjacent to the Jabung block, operated by PetroChina.

Based on volumetric studies from international petroleum consultancy DeGoyler & MacNaugton (D&M), the Lemang block holds an estimated 511 million barrels of oil and 467 billion cubic feet of gas (gross recoverable prospective resources).

The production sharing contract (PSC) for the Lemang block was awarded by BPMigas in 2007, and remains valid until 2037.

PT Hexindo Gemilang Jaya holds 51 percent participating interest in Lemang Block, while Sugih holds a 49 percent interest (non-operator) through its subsidiary Eastwin Global Investments Ltd. Eastwin is a natural resource-focused investment company with specific focus on the Indonesian market. Sugih acquired 100 percent ownership of Eastwin in February 2012.

Sugih said in its website that the operator of the Lemang block has made two successful oil and gas discoveries at the block in exploration drilling, discovering 222 feet of gross pay at the Selong-1 exploration well (790 BOPD and 16.8 MMSCFD) and 274 feet of gross pay at the Akatara-1 exploration well (380 BCPD and 11.0 MMSCFD).

The operator also announced successful appraisal drilling of the Akatara prospect in August 2013 and plans to study the block further. (*)

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