Swedish oil and gas explorer and producer Lundin Petroleum has discovered oil in the Bertam-2 appraisal well in the PM307 production sharing contract (PSC) area, offshore Peninsular Malaysia.

The well was drilled to a total depth of 1,884m by jack-up rig Offshore Courageous.

Lundin Petroleum president and CEO Ashley Heppenstall said that Bertam-2 is the fifth and final well in Lundin Petroleum’s 2011 Malaysia exploration drilling campaign.

"Bertam is a potentially commercial oilfield and we will undertake immediate studies to determine the range of oil resources with a view to rapidly selecting a concept and moving forward towards development, or planning further appraisal if required," added Heppenstall.

The objectives of the well were to appraise and test the Oligocene lower coastal plain sandstones of the PM307 PSC area.

Lundin said Bertam-1 discovered oil in the K10 sandstone reservoir and flowed 34° API oil at a rate of 624bopd on a short-term production test. The well proved the continuity and quality of the reservoir sandstone to the north-east of the Bertam-1 discovery well. Deeper sands that formed a secondary exploration target were confirmed to be water-bearing.

The K10 reservoir sand was also fully cored and logged, and preliminary interpretation indicates oil interval with very good reservoir properties. On production testing, a stabilised flow rate of 756bopd was achieved.

The PM307 PSC is operated by Lundin Malaysia with a 75% equity interest, and Petronas Carigali, which holds 25%.