Licence Details

Area: 2878 km²

Effective date: 07.10.2005.

Term: 30 years.

First Period Work Commitment: 4 Exploration wells + 750 km 2D seismic.

Interests:

   Pan Orient Energy Citarum (Operator): 69.00%

   Mitra Energia Citarum (Sound): 20.00%

   Bumi Parahyangan Energi: 11.00%

Contract Area History

The Citarum PSC is located onshore West Java at the southern margin of the Northwest Java Basin.  The basin hosts of a series of oil and gas fields extending over a 200 km NW-SE trend and some 50 km into the offshore area.  Several producing oil and gas fields are located immediately north of the block, including Jatinegara, Jatirarangon, Pasirjadi, Subang and Randegan.  The block was un-drilled prior to award of the current PSC.

Exploration

Exploration targets are identified in Miocene Parigi, Cibulakan and Baturaja, dominantly carbonate, formations and Oligocene Talang Akar clastic and Jatibarang volcaniclastic formations.

From existing seismic data in the western part of the block (Jonggol area) a number of prospective wrench fault-controlled structures have been identified.  The Pasundan-1 well has tested one of these prospects.  Remaining prospectivity in this area is in smaller structures with P50 prospective resources generally less than 30 Bscf.  The Guelis prospect (P50 26 Bscf*) will be drilled as part of a three well campaign beginning in late 2011.

A new 865 km seismic survey over eastern areas of the PSC (Subang-Purwakarta, Sumedang and Majalengka areas) was completed in July 2010.  In contrast to Jonggol the eastern areas are dominated by complex thrust terrains, within which several large prospective structures have been identified with P50 resources in the range 290 - 580 Bscf.  A field geology programme of mapping and sampling has recorded a number of oil seeps in the Majalengka area. Wwo of these prospects, Cataka (P50 471 Bscf*) and Jatayu (P50 288 Bscf*), will be drilled as part of a three well programme commencing in late 2011.

Drilling Results

Pasundan-1 (TD 10,412 ft; Suspended, 27.09.2007; P&A 09.12.2008) was drilled as the first exploration commitment well on the block.  The well tested two zones in the lower part of the Baturaja Formation carbonates.  DST 2 (8024-8069 ft) flowed formation water to surface at a rate of 3000 barrels per day with traces of hydrocarbon gas.  In November 2008 the well was re-entered in order to test an upper cavernous interval in the Baturaja Formation.  The test (DST 3, 6778-6788 ft) flowed formation water at an average rate of 2900 barrels per day, with no indication of hydrocarbons.  The deeper Talang Akar and Jatibarang formations were tight and not tested.

Note: Resource estimates indicated by an asterisk (*) indicate that the figures are supported by a corresponding Competent Person's Report.