I reckon we will drill towards the end of the year if we are luck hope not
Quest Petroleum (ASX:QPN) should open higher after reprocessing and re-interpreting seismic on its Ranau PSC in South Sumatra, Indonesia.
In October last year, Quest commenced the advanced reprocessing and interpretation of 62 kilometres of 1993 vintage 2D seismic data.
These seismic lines were shot in the north-west section of the Ranau PSC and cover a gravity high identified in the gravity survey performed by Quest in 2012.
Original data was of good quality, with sufficient charge and recording spread to enable modern reprocessing technology to produce an improved seismic imaging of the subsurface.
Reprocessed data shows a clearer image of the subsurface and has also uncovered previously undefined leads and potential prospects.
Quest engaged PT Tesla Indonesia, a firm familiar with the regional geophysics and geology, to reprocess the existing seismic data using Promax R5000 software.
PT Tesla then conducted a detailed geological and geophysical study using the new data to identify, qualify and quantify additional prospects and leads.
Results of work performed indicate the presence of a structural high, known as Lead A, that coincides with the gravity high previously identified.
At the primary reservoir horizon, the Lead is significant in size, covering more than 12 square kilometres, and exhibiting 250 feet of structural closure.
Seal integrity, source and maturity definition require further investigation and review, whereupon a decision will be made whether to conduct more seismic over the block or work the structural high into a drillable target.
Gas discovered at Ranau can be commercialised through the nearby South Sumatra – West Java gas transmission pipelines and processing infrastructure that supply large markets in Sumatra, West Java and Singapore.
Domestic gas markets are growing rapidly as distribution networks are built and gas prices achieved in Indonesia are currently US$4.50 to US$7 per thousand cubic feet.
Discovered oil may be commercialised through facilities located within 50 kilometres of that process and transport oil from the large, Pertamina-operated, fields to the north.
QPN Price at posting:
0.3¢ Sentiment: LT Buy Disclosure: Held
