Cooper Energy Bags Indonesia Oil, Gas Block

Australia listed Cooper Energy has been awarded the Merangin III production sharing contract (PSC) onshore Indonesia, on a 100% basis.

The new PSC is located within the central portion of the highly productive South Sumatra Basin and is considered by the company to be very prospective for both oil and gas.

The work program consists of seismic acquisition and one well at a total cost $9.7 million over the initial 3 years. There is also a signature bonus of $2 million for the PSC.

The Merangin III PSC is immediately adjacent to the Suban Field, which has reported Original Gas in Place in excess of 6 TCF1.

The company will initially hold 100% equity. “However, in accordance with prudent risk management, we propose to farm-out a portion of our interest prior to any significant capital expenditure,” Executive Director, Hector Gordon, said. He added that the company has already received several expressions of interest from companies interested in acquiring equity in the PSC.