press release

PTTEP successful in Arthit drilling campaign

The following news release was issued by PTTEP

PTT Exploration & Production Public Company Limited (PTTEP) announced that the company has successfully completed its Arthit Field's second drilling campaign of 14 wells with great success.

The Arthit Field, currently in its exploration stage, is located 250 kilometers east of Songkhla, and comprises blocks B14A, B15A and B16A. PTTEP conducted the 3-D Seismic Survey for the entire area in 1998. In 1999 and 2000, the Company drilled seven exploratory wells during the first drilling campaign in B15A and B16A. Drilling results confirmed positive discovery of gas and condensate. The company proceeded with drilling an additional 11 exploratory and appraisal wells in the second drilling campaign in 2001. With encouraging results, the Company decided to continue drilling additional gas and condensate wells. In total, PTTEP drilled 14 exploratory and appraisal wells in this campaign.

All but one well out of the 21 exploratory and appraisal wells in both campaigns proved to be successful gas and condensate wells. Detailed results from the most recent 14 wells drilled in 2001 and 2002 are as follows:


Two exploratory wells have been drilled, with gas sand thickness ranging between 48 and 52 meters. Test rates yielded gas at the combined flow rates per well between 14.2 and 15 million standard cubic feet per day (MMSCFD), plus 213 to 472 barrels of condensate per day.


Six exploratory and appraisal wells have been drilled, with gas sand thickness ranging between 18 to 83 meters. Test rates yielded gas at the combined flow rates per well between 18.5 and 29.4 MMSCFD, and condensate at 324 to 680 barrels per day.


Four exploratory and two appraisal wells have been drilled, with only one well being identified as non-commercial. The remaining five wells proved to be productive, with gas sand thickness ranging between 13 to 55 meters. Test rates yielded gas at the combined flow rates per well between 6.8 and 53 MMSCFD and condensate at 67 to 760 barrels per day. Notably, crude oil sand was also discovered at well Arthit-14-5. The test rates indicated the flow rate that reached 2,826 barrels of oil per day.

Dr. Chitrapongse Kwangsukstith, the PTTEP president, stated, "Our discovery has shown that the Arthit Field contains a significant amount of gas and condensate reserves. Initial promising results from our first 11 wells in this second drilling campaign encouraged us to continue with three more wells. And we are very enthusiastic that these discoveries remain integral to our continued and concerted efforts to ensure that Thailand has access to long-term, clean and environmentally-friendly natural gas."

The PTTEP president continued, "Not only has the success of this drilling campaign confirmed the significant presence of hydrocarbons in the exploration stage of Arthit Field equivalent to Bongkot, it has also highlighted PTTEP's outstanding capabilities as a competitive Thai Operator in the Gulf of Thailand. Evidence of this lies in the remarkable improvements we have made in our drilling technologywhen drilling, we now require less time, incur lower costs, and yet achieve higher performance. We remain firmly committed to developing Thailand's petroleum resources, particularly so that the nation can reduce expensive imports, become ever more self-reliant, and ensure prosperity for the Thai people."

To satisfy Thailand's domestic energy demands, PTTEP, for more than 16 years, has conducted its core business of petroleum exploration and production, both onshore and offshore of Thailand and neighboring countries, including Indonesia, Malaysia and the Union of Myanmar. Owned and operated by Thais, PTTEP is also the first Thai, full-scale Operator in exploration, development and production of petroleum resources. The company is the Operator of the largest natural gas field in the Gulf of Thailand, the Bongkot Field, which currently supplies 30% of domestic petroleum production. PTTEP is also the Operator of the Arthit Field, and owns 80% of this project. PTTEP's co-concessionaires are Unocal Thailand, Ltd. (16%) and Moeco Thailand Co., Ltd., an affiliate of Mitsui Oil Exploration Co., Ltd. (4%).

Updated: February 2002