Australian company Timor Resources has completed the first of three exploration wells onshore East Timor. The company said it hit oil and gas in its contract area, although it remains to be seen if the discovery is commercial.
The first well, known as Karau, is part of a back-to-back campaign that started late October. The probe was drilled in PSC TL OT 17 08 and Schlumberger has logged the well.
Timor Resources is the operator, with the national oil company Timor Gap, as a joint venture partner. “The discovery comprises oil and gas and represents the first find from the contract area in Timor Leste”, the company said in a statement. Timor Resources did not provide any more data or information about the drilling results. East Timor is also known as Timor Leste.
“The exploration well was drilled after new insights from the onshore seismic survey, completed by Timor Resources in 2018-2019. The rig has moved to the next well location, in readiness to spud the second exploration well before Christmas,” said Timor Resources.
Any significant oil discovery would provide a welcome windfall for East Timor, which has been heavily reliant on revenues from oil and gas. But production from its sole producing field Bayu Undan is waning and operator Santos expects to shut down the field within a couple of years.
Significantly, there is a long way to go before any discovery and commercial production potential is proven onshore East Timor.
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