South Block A

Prospective Reserves

Via controlling interest in Bow Energy Ltd. Blue Sky is majority shareholder in the South Block A Production Sharing Contract (PSC), an 1,800 km2 block in the prolific North Sumatra Basin. One of the most productive hydrocarbon provinces in Indonesia, the area boasts over 80 known oil and gas fields in which a combined 25.6 TCF gas, 900 MMbbls NGLs, and 700 MMbbls oil have been discovered.

South Block A has prospective reserves of over 1 Tcf and 300 MMbbls.

Exploration in adjacent PSCs is also encouraging. Medco drilled the Matang-1 gas discovery in the Block A PSC in 2012/13. Well participant Premier Oil reported a flow of 25 MMscfd with 15% CO2 and recoverable gas resources between 100-400 Bcf.

Blue Sky has interests in all three Sumatran Basins

South Block A

Leads

South Block A

Commercialization Infrastructure

South Block A PSC in Blue with Leads Labeled

South Block A’s location primes it for oil and gas development, with both commodities in strong demand within Sumatra. Furthermore, a new 400 MMscfd gas pipeline has been constructed which passes directly through the Block, close to several key prospects, ultimately connecting Lhokseumawe and Sumatra’s capital city Medan.

The pipeline will transport gas from the renowned Arun gas field’s facilities, which include the recently completed LNG receiving terminal. These developments can markedly advance the commercialization of South Block A’s potential gas discoveries.

South Block A

Pineung Lead and Well

Top Peuteu Formation Structural Map with Gold Stars Denoting Pineung Lead
Peutu Formation Seismic Map with Location of Pineung-1 Well