AWE has completed a drill stem test (DST) on the G Sand reservoir at the Ande Ande Lumut (AAL) 4XST1 appraisal well in offshore Indonesia.

Following the DST, results exceeded pre-drill expectations and are 58% higher compared with the previous G-sand tests conducted at AAL-3X.

Conducted over a 3.5m perforated interval in the sidetrack well bore, the DST was assisted by an electrical submersible pump (ESP).

During the process, bulk oil samples were recovered for further testing. However, well site measurements indicates that the G-sand oil has a specific gravity of 10.7 API at 60°F.

AWE managing director and CEO David Biggs said: "The better than expected flow-rates achieved and excellent reservoir quality underline the significant potential of the AAL oil project.

"The better than expected flow-rates achieved and excellent reservoir quality underline the significant potential of the AAL oil project."

"The positive results of the G-sand DST, together with a forecast lower cost environment and an improving long-term outlook for the oil price are all encouraging in respect of a decision to develop the AAL field."

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The AAL-4X well has been drilled in water depths of 72m using the Raniworo jack-up drilling rig.

After completion of preliminary analysis, it was noted that wireline log data indicated an 8m oil column in the G-Sand and good quality reservoir.

AWE is currently carrying out operations to commence a second DST test in the main AAL field K-sand reservoir.

The AAL oil project is part of the Northwest Natuna PSC, which is located offshore Indonesia in the Natuna Sea.

It consists of the K Sand reservoir and the underlying G Sand reservoir.

The primary target of the AAL-4X well is the G Sand reservoir, which is estimated to contain 289 million barrels gross oil in place with 36 million barrels gross recoverable oil.

The Northwest Natuna PSC is equally owned by AWE through its subsidiaries and Santos (the operator).