DRILLING PROJECT MANAGEMENT (DPM)

ALKALINE DRILLING CAMPAIGN

GROUP-7
Onshore Gas Well with Overburden Formation
JAKARTA DRILLING SOCIETY
APRIL 25TH, 2020

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 2 OUTLINE

 Project Resources
 Opportunity Statement, Value Drivers & Vision Of Success
 Business Case and Economic Summary
 Alkaline: Project Frame
 Decision Hierarchy
 Spider Plot and Structural Map
 Campaign Project Timeline
 Interpreted Seismic Data
 Geological Prognosis
 Phase-2 : Work Plan

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3 Project Resources

DE/DRB Members Well Decision Team (WDT)

Name Role in Project Name Role in Project

Yudi Hartono Decision Executive Riski W. Project Manager

Galih / Sauda /
Ashadi Endorser Sr. Drlg Eng / Drlg. Eng.
Ghita
Redha Endorser Satya Bagoes Reservoir Engineer
Sinar Reservoir Engineer
Resources
Lalu Geologist

Name Role in Project Faris Geologist

Jeff Rismanda Resources Gamal / Rani Planning Engineer

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 4
Opportunity Statement, Value Drivers &
Vision Of Success
Opportunity Statement

• Drill and complete one (1) development gas wells; ABC-77. To maintain sufficient supply to the existing Buyer refer to daily contact quantity
as per Gas Sales Agreement.
• Produce proved gas reserves from additional compartment 4.0 BSCF, optimize and maintain the production from new well pad.
• Supply gas potentials 2.0 MSCFD which can not be optimized by existing wells.

Value Drivers
The following are the value drivers for this project:
• Monetize additional reserves from Alkaline Field with execution of 1 additional well by continuously maintain gas supply.
• Improve and sustain a positive Net Investment Position (NIP) and minimize unrecovered hydrocarbon throughout PSC life.
• Well economics (NPV; DPI; IRR).
Vision of Success

• Gas discovery and meet production potential by 2.0 MSCFD

• Incident- and injury-free. No major fire/ LTI.
• Minimum NPT, NPT < 24 hrs.
• Deliver first gas as per project timeline.
• Complete the well within AFE days and budget.

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5
Business Case and Economic Summary
4,500,000,000.00
Sumur ABC-77 4,000,000,000.00
3,500,000,000.00
Total Gross Revenue US $ (000) 24,067
3,000,000,000.00
1 Opex & Depresiasi US $ (000) 8,894
2,500,000,000.00
2 Contractor Take US $ (000) 6,069
2,000,000,000.00
3 Government Take US $ (000) 9,104
NPV @ DF : 10.00% US $ (000) 3,009 1,500,000,000.00
IRR % 30.3% 1,000,000,000.00
POT Years 2.65 500,000,000.00
PI US$ / US$ 1.49
-
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Business Case

Government Take Opex & Depresiasi

 1 additional well to drill at Q4 2021, to maintain gas production in Alkaline field
38% 37%  Production will later be tied-in into existing surface facilities pipeline. New Pipeline must be
installed into new existing flow line from surface facilities.
 Expected to have a gross revenue USD 24 million with USD 6.0 gas price / MSCF.
Economic Summary
Investment/Well Cost = $ 6.1 M
Contractor Take NPV = $ 3,009
25%
DPI = 1.49
IRR = 30.27%
POT = 2.65 year (for 1 well)
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6 Alkaline: Project Frame
In the Frame:
• Incident- and injury-free. No LTI
• Maximum NPT < 24 hrs
• Establish project and multi-disciplinary VBWOs
• Economic decision analysis
•Well design; drilling proposal; work plan and budget; AFE
• Formation evaluation program
• Technology selection.
• Well characterization (Well Testing flow test)
• Well hook-up, POP dates and instrumentation including handover to facilities team
• Look-back process of Project Management (static and dynamic)

Outside the Frame: - Amended Drilling Schedule. - Well Portfolio. - AFE Revision
- Surface Facilities –Gas deliverability and Supply. – Existing Contract
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7 ABC-77: Decision Hierarchy
Givens
• Drill one (1) gas well with overburden
pressure
• Raw Data
GIVENS • Existing Contract

Strategic Focus (Phase 2)

• Well Direction
STRATEGIC • Well Size
FOCUS

Tactical Decisions (Phase 3)

• Detailed well design (casing depths).
TACTICAL • Production hole size.
DECISIONS • Formation evaluation program.
• Well Characterization

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 ABC-77: Timeline
No
No
8 Process
Process
2020
2020 2021
2021
8
8 9
9 10
10 11
11 12
12 1
1 2
2 3
3 4
4 5
5 6
6 7
7 8
8 9
9 10
10 11
11 12
12
Survey
Survey ofof Location
Location
1
1 Survey
Survey Geotechnical
Geotechnical
Internal
Internal Review
Review & & Approval
Approval
2
2 Detail
Detail Engineering
Engineering
3
3 FID
FID Approval
Approval
4
4 Drilling
Drilling Poject
Poject Risk
Risk Assement
Assement
5
5 Hazard
Hazard Effect
Effect Register
Register
6
6 Mobillization
Mobillization Equipment
Equipment Assement
Assement
7
7 DWOP
DWOP
External
External Review
Review & & Approval
Approval
88 POD
POD Approval
Approval
99 EPT
EPT SKK
SKK Migas
Migas well
well design
design approval
approval (3(3 weeks)
weeks)
10
10 AFE
AFE Submission
Submission & & approval
approval (2(2 months)
months)
11
11 Land
Land Clearance
Clearance (5 (5 months)
months)
12
12 Explosive
Explosive permit
permit (3 (3 months)
months)
13
13 PI
PI Besi
Besi Baja
Baja Permit
Permit (4(4 months)
months)
14
14 Master
Master List
List (3
(3 months)
months)
Process
Process ofof Procurement
Procurement
15
15 Drilling
Drilling Rig
Rig && Other
Other services
services
16
16 3rd
3rd Party
Party Services
Services
17
17 Long
Long Lead
Lead Items
Items (OCTG,
(OCTG, Wellhead)
Wellhead) -- 66 mo
mo
18
18 Long
Long Lead
Lead Items
Items (Completion)
(Completion) -- 66 mo
mo
Operation
Operation
19
19 Rig
Rig &
& 3rd
3rd party
party Mobillization
Mobillization & & R/U
R/U -- Well#1
Well#1
Drilling
Drilling well#1
well#1
20
20 Completion
Completion well#1
well#1
Unloading
Unloading & & Testing
Testing well#1
well#1
21
21 R/D
R/D and
and Demobillization
Demobillization

FID:
FID: Final
Final Investment
Investment Decision
Decision

Risk Mitigation Plan

Delay on getting Long Lead Item To get AFE approval in time, using existing contract

Permit Approval Close communication with the host authorities

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9
ABC-77: Spider Plot and Structural Map

Location Well
PROJECT DETAILS: ALKALINE FIELD
ABC-77
Geodetic System: Universal Transverse
Mercator Djakarta
Ellipsoid: Bessel 1841
Zone: Zone 505 (114 E to 120 E)
System Datum: Mean Sea Level

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 11 ABC-77: Interpreted Seismic Data
NW

ABC-77

SE

LEFT: Index Map that shows location of ABC-77 intersecting

By Seismic X-Section along NW – SE direction.
RIGHT: Initial seismic interpretation of ABC-77 OS. There are 5
interpreted horizon in which indicate the top of formation (Horizon A –
Horizon E), based on the appearance of seismic feature contrast
(Amplitude). Moreover, there are no faults indication along borehole.

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12 ABC-77: Geological Prognosis
DEPTH GENERAL DESCRIPTION GENERALIZED
LITHOLOGY (Approx. depths, ft.TVD)
(FT-MD) WELL DESIGN
0 – 1050 ft TVD 20” casing
Mahakam Group Clayed sand majority, sandstone (~150ft MD)
Handil Dua and Attaka Formation
13-3/8” shoe
? (~467ft MD)

1050– 4100 ft TVD 9-5/8” shoe

Clayed sand, sandstone, sandy
Kampung Baru Group (~1656ft MD)
clay, shalestone, coal layer,
? Sepinggan and Tanjung Batu
limestone marking B and Bo
B Marker
Formation

BO Marker
?
4100– 7900 ft TVD
Balikpapan Group
sandstone, shalestone,
sandyclay, coal layer, limestone 3-1/2” tubing
Mentawir and Gelingseh
Formation Co Marker cemented
? (~7323ft MD)

Depth (feet)
• Expect to encounter overburden pressure in KP-Baru formation as well as Marker Name
depletion pressure. TVD
• From seismic analysis ABC-77 will not hit any fault. Limestone B 3540
• Penetrate similar reservoir characteristic as same as offset wells. Limestone Bo 4020
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Reservoir 7200
 13 Phase-2 Work Plan
Phase 2 Work Plan – Key Activities Est. Completion Date
 Establish Value-Based Well Objective (VBWO)
 Uncertainty Management Plan (UMP)
 Develop Alternatives Matrix and Strategy Table
 Generate and Evaluate Well Alternatives
 Subsurface Hazards Assessment (SSHA)
 Complex Well Process (CWP) 21 June 2020
 Surface Facillity Plan
 Risk Assessment of Alternatives
 Recommend Well Design Concept
 Update Project Economics (±20%)
 Phase 2 Decision Quality Assessment (DQ Spider)
1 July 2020
 Forward DSP/Pre-Read Material to DE/DRB

15 July 2020
 Snaking with DE and DRB Members

15 August 2020
 Phase 2 to Phase 3 DRB Meeting
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