Interra Resources Limited informed shareholders that the drilling of infill well TMT-50 at the Tanjung Miring Timur (“TMT”) oil field in Indonesia by an external contractor has reached total depth and casing has been set. The Company also wishes to advise that well TMT-49 has had remedial work carried out and is undergoing treatment prior to re-testing.
Interra owns a 70% interest in the TMT Technical Assistance Contract (“TAC”). The TMT oil field is onshore and is located in South Sumatra. The owner of the remaining 30% and operator of the field is PT Retco Prima Energi.
The spud of TMT-50 was announced on 10 July 2007. This well is part of a 3 well infill development program. The well has been drilled to a total depth of 1,355 metres in the meta-sediment basement to test a seismic anomaly in the Lahat Formation which lies between the producing primary objective Talang Akar Formation (“TAF”) and the basement. The Lahat Formation does not currently produce in the field. Casing has been cemented in the borehole and is currently undergoing testing. There are several sands which had good oil shows during drilling and have good wireline log characteristics. One of these is in the Lahat Formation and if productive, would represent a new producing reservoir for the field and as such, a new future drilling target. If testing in this formation is successful, production will be established. If it is unsuccessful, testing will be undertaken in the TAF which is the primary producing formation in the field.
It was announced on 6 July 2007 that well TMT-49 was undergoing production testing following perforation of the most promising zones in the TAF. After significant testing, only water has been produced. It is suspected that the produced water is coming from deeper formations below the TAF in the hole. It is apparent from the cement bond logs that there are gaps between the casing and the side of the hole and it is presumed the water is flowing through these gaps. The TAF is structurally high to surrounding TAF producing oil wells and as such, should be oil charged and not producing water. A workover rig has been moved on location and a remedial cementing job has been performed below the prospective zone to attempt to prevent the water inflow from below. Currently, the prospective zone is undergoing treatment to determine if production can be established.
The field is currently producing in excess of 800 barrels of oil per day from 29 wells.
