(EnergyAsia, November 10 2011, Thursday) — Ramba Energy Limited, an oil and gas exploration and production company with interests in Indonesia, said it has started gas production from the JRR-7 development well at its Jatirarangon block in West Java in Indonesia.
With approximately four million standard cubic feet per day (mmscfd) flowing from the first of six zones, the company said the production is close to the expected combined output for two new development wells.
Ramba said it is looking to triple gas production from the Jatirarangon block by the end of the year if JRR-6 yields positive results.
JRR-7 is the first of two development well projects in the Western closure of the Jatirarangon block while JRR, which was drilled from October 23, is expected to start production by the end of the year.
The company said the two wells, which were initially expected to produce an additional four mmscfd of gas, could produce six mmscfd instead.
CEO David Aditya Soeryadjaya said: “This is a great development for Ramba and our Jatirarangon block, with gas production exceeding initial expectations. We are excited about the possibility of the JRR-6 development well yielding similar results. As we have already more than doubled production, we now believe we may be able to triple production from the Jatiraragon block by year’s end.”
The Jatirarangon block currently produces approximately 6.8 mmscfd of gas and 80 barrels of oil per day.
The additional revenue for the block from new gas sales is expected to reach US$20,000 per day, based on a conversion rate of 1 mmscfd to 1,165 mmbtu and a fixed gas price of US$4.332/mmbtu.
Ramba Energy Limited operates the Jatirarangon block with a 70% working interest whilst PT Wahana Sad Karya owns the remaining 30%.