Jakarta, CNBC Indonesia – A number of companies have recently announced the discovery or renewal of resources or reserves of ‘treasures’ found in the country. The ‘treasure’ is in the form of gold, oil and natural gas.
A joint venture company owned by Aneka Tambang (ANTM) and Vale SA, PT Sumbawa Timur Mining (SMT) for example. The consortium of the two companies reported an update on the potential gold resources of the Hu’u Project located in Dompu Regency, West Nusa Tenggara (NTB).
Vale SA, a Brazilian multinational mining company, holds 80% of STM’s shares through Eastern Star Resources Pty Ltd, which is 100% owned by the company. Meanwhile, state-owned mining company Antam holds the remaining 20%.
In a recent statement, SMT, which is the 7th generation Contract of Work (KK) holder, announced that: the potential for mineral resources in the project increased as of December 2021, an increase of 20% compared to the previous exploration results as of December 2019.
SMT reported an increase in potential indicated mineral resources to 1.1 billion tonnes (Mt), with copper grades of 0.96% and gold grades of 0.58 g/ton (ppm). Meanwhile, the total inferred mineral resource potential is 1.0 Mt containing 0.7% Cu copper and 0.4 g/ton gold.
It should be noted that the inferred resource has low geological confidence, while the indicated resource has medium geological confidence. Until now the company has not disclosed the amount of measured resources that have a high level of geological confidence. The increase in the classification of these resources can be generated with a more detailed exploration.
Similarly, the company also does not include the amount of reserves that generally reflect the feasibility of the mine from the economic, production and processing, environmental, social and other aspects.
As an illustration, in 2020 Freeport Indonesia mined gold with an average grade of 1.1 grams/ton, while the copper it mined had an average grade of 1.32%. Freeport-McMoRan Inc’s annual report also revealed the average grade was up from 2019 where for gold was 0.93 g/ton and copper was 0.84%.
Don’t miss it, Pertamina
Furthermore, there are also other ‘treasures’ obtained by Pertamina. PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) said it had succeeded in finding oil and gas reserves from drilling the GQX-1 exploration well in the North Java waters. The exploration well GQX-1 is located approximately 17 km from the existing MM field production facility.
This well was successful in discovering oil and gas through the Drill Stem Test (DST) #1 which was conducted in a shallow marine sandstone reservoir of the Main Formation.
Director of Exploration of PT Pertamina Hulu Energi (PHE) – Subholding Upstream, Medy Kurniawan in a written statement said “from the results of the First Layer Content Test, the gas flow rate is 3.6 million standard cubic feet of gas per day (MMSCFD) and 108 barrels of oil per day (MMSCFD). BOPD).”
Medy also said that the GQX-1 well, which was drilled at the end of April 2022, reached a final depth of 2958 feet Measured Depth (ftMD) in the middle of May 2022.
Furthermore, the company is said to be conducting a Second Layer Content Test/DST#2 at intervals of 2494-2519 ftMD in the MR-26 layer.
This year Pertamina itself targets the addition of oil and gas reserves of up to 755 million barrels of oil equivalent (BOE). Meanwhile, additional resources are targeted to reach 222 million BOE. This year, the company also plans to drill 813 development wells.
Bakrie Group
Bakrie Group issuers engaged in oil and gas exploration and trading also reported the discovery of new treasures in Indonesia.
PT Energi Mega Persada Tbk (ENRG) said that the company’s subsidiary, namely PT Imbang Tata Alam (ITA), which is the operator and owner of 100% working interest in the Malacca Strait Cooperation Contract (KKS) block, 115 million barrels of new oil have been discovered from the block.
In a statement published in the information disclosure of the Indonesia Stock Exchange (IDX), ENRG said that the new oil discovery was in the process of being certified by Gaffney, Cline & Associates, which is one of the world’s leading oil and gas consultants.
ENRG management also said that ITA managed to find an additional 41 million barrels of on-site oil in the TB Field. Thus, the total number of on-site oil discoveries (original oil in place) in the TB and Ringgit fields to 156 million barrels (115 million barrels + 41 million barrels).
With the completion of drilling activities at the new oil discovery location, management expects ITA to become one of the 10 largest oil producers in Indonesia.
The main director of ENRG Syailendra S. Bakrie also said that ITA will drill 19 development wells in the related field to start producing the new oil discovery. Meanwhile, the estimated expenditure (related costs) to produce this discovery of oil reserves commercially is around IDR 2 – 2.5 trillion in 2022 and 2023.
CNBC INDONESIA RESEARCH TEAM
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