Cooper Energy Limited ("Cooper Energy", ASX: COE) announces that it has made an assessment of the reserves in the Bunian field in the Tangai-Sukananti KSO in South Sumatra, Indonesia, following analysis of the results of the Bunian-3 ST2 well which was completed earlier this month and reported to the ASX on 27 April and 4 May 2015.
The net share of Proved and Probable (2P) reserves attributable to Cooper Energy at 18 May 2015 is 1.55 million barrels of oil (MMbbl). This represents an increase of 1.26 million barrels of oil compared to the previous assessment of 0.33 million barrels as at 30 June 2014 and taking account of production to 18 May 2015.
Net1 Estimate at 18 May 2015
|
1P 2 2P 3 3P 4
|
TRM3 Sand
|
MMbbl
|
0.52
|
1.19
|
2.26
|
K1 Sand
|
MMbbl
|
0.18
|
0.36
|
0.75
|
Total Field5
|
MMbbl
|
0.70
|
1.55
|
3.01
|
1 Net: Reserves attributable to Cooper Energy's 55% interest in Tangai-Sukananti KSO
2 1P: Proved reserves
3 2P: Proved and Probable reserves
4 3P: Proved, Probable and Possible reserves
5 Total: Totals may not reflect arithmetic addition due to rounding. The method of aggregation is by arithmetic sum by category. As a result, the 1C (P90) resource may be a very conservative estimate and aggregated 3C (P10) may be a very optimistic estimate due to the effects of arithmetic summation
Reserves at 30 June 2014
|
MMbbl
|
0.04
|
0.33
|
0.59
|
Revisions
|
MMbbl
|
0.70
|
1.26
|
2.46
|
FY15 Production1
|
MMbbl
|
-0.04
|
-0.04
|
-0.04
|
Reserves at 18 May 2015
|
MMbbl
|
0.70
|
1.55
|
3.01
|
1 FY15 Production: Net production in the period 30 June 2014 to 18 May 2015
Cooper Energy Managing Director David Maxwell said "Bunian-3 has increased the remaining reserves in the Bunian field by more than 350% which is a very pleasing result and reinforces our view of the upside opportunities in our Indonesia portfolio. In addition, Bunian-3 identified further
1
potential in the TRM1 and TRM2 sands and opportunities for additional upside which could be tested by a further well."
Mr Maxwell said the revision to Bunian reserves is expected to significantly increase the company's forthcoming FY15 year-end reserves assessment. "Our year end reserves report will incorporate a review of results and performance from across the company's entire portfolio. Whilst this process is yet to commence, I expect the addition of 1.26 million barrels 2P oil reserves to be a significant factor in the determination of our total reserves at 30 June as this represents more than double our anticipated production for FY15 of 470,000 to 500,000 barrels of oil."
Cooper Energy will announce its FY15 reserves with its financial results on 17 August 2015. The
company's most recently reported 2P reserves were 2.01 million barrels as at 30 June 2014.
The Bunian oil field is located in the Tangai-Sukananti KSO, South Sumatra, Indonesia (Figure 1). Joint Venture participants in the Tangai-Sukananti KSO are:
Cooper Energy (55% and Operator)
Mega Adhyaksa Pratama Sukananti Ltd (45%)
The Bunian structure is a four-way, fault bounded anticline defined by the 2011 Sukananti 3D seismic survey. The field was discovered in 1998 by the Bunian-1 exploration well which initially tested 1,585 barrels of oil per day. Bunian-1 has produced over 1 million barrels of oil from the TRM3 sand and is currently producing at approximately 200 barrels of oil per day. Bunian-3 is located 730 metres southwest of Bunian-1 and the primary target was the Talang Akar Formation TRM3 sand.
The Bunian-3 ST2 development well intersected the TRM3 sand 18.5 metres high to Bunian-1. The well intersected 13.5 metres of net sand, consisting of 4 metres of gas and 9.5 metres of oil, compared to 2.8 metres of net oil sand in Bunian-1. On flow testing, the TRM3 sand achieved a stabilised flow rate equivalent to 1,742 barrels per day of 35 degrees API oil and 1.25 mmscf/day of gas through a 12/64 inch choke.
A new oil pool discovery was made in the deeper K1 Sandstone. The K1 sand was intersected 14.3 metres high to Bunian-1 and 18.6 metres of net sand is interpreted consisting of 8.8 metres of gas and 9.8 metres of oil. The K1 sand flowed on test at a rate equivalent to 1,590 barrels per day of 41 degrees API oil and 1.8 mmscf/day of gas through a 1/8 inch choke.
Bunian-3 has been completed as an oil producer from the TRM3 and K1 sands. Plans for further appraisal and development drilling at the Bunian field are under review. The KSO is currently producing at approximately 800 barrels oil per day limited by export constraints. Integrated field development planning to increase production and optimise oil recovery is in progress. Gas resources in the TRM3 and K1 sands are currently not included in the reserve bookings pending the outcome
of development plans.
Reserves have been assessed using an approach consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). This methodology consists of probabilistic estimation for both the TRM3 sand and the K1 sand reservoirs and incorporates a range of uncertainty relating to each of the key reservoir input parameters to predict the likely range of outcomes.
2
Analytical procedures used to assess Reserves were:
- interpretation of 3D seismic data;
- petrophysical and hydrocarbon fluids analysis from the wells drilled in the fields (ongoing);
- interpretation of production test information;
- interpretation of production information; and
- review of recovery factors from analogous reservoirs and fields. The date of this reserves assessment is 18 May 2015.
3
4
The information contained in this report regarding the reserves assessment is based on and fairly represents information and supporting documentation reviewed by Mr Andrew Thomas who is a full- time employee of Cooper Energy Limited holding the position of Exploration Manager, holds a Bachelor of Science (Hons), is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers and is qualified in accordance with ASX listing rule 5.41 and has consented to the inclusion of this information in the form and context in which it appears.
5