SapuraKencana Petroleum Bhd announced today a major gas discovery offshore Malaysia within the SK408 Production Sharing Contract area. The discovery consisted of a 600 meter gross gas column in the primary target reservoir within the Late Miocene Carbonates.
This was the fifth and final well within the company’s 2014 drilling campaign in this area and adds to four other discoveries announced in June.
According to a report by AllianceDBS Research, this latest discovery could hold up to 1 trillion cubic feet (tcf) of natural gas. The other four wells reportedly contain a total of 1.5 tcf of gas.
AllianceDBS holds a “buy” rating on SepuraKencana and notes that it will likely be 3-5 years before gas is produced at the field and further well testing will be needed before the company makes a final investment decision on the development.
SapuraKencana Petroleum is the operator of SK408 with a 40% working interest with partners PETRONAS Carigali Sdn. Bhd. (30%) and Sarawak Shell Bhd. (30%) holding the remaining interest. SK408 Block is located in shallow waters approximately 120 kilometers offshore Sarawak covering an area of approximately 4,480 sq. km in the prolific Central Luconia Gas Province.