SINGAPORE’S KrisEnergy has taken a 95 per cent stake in the Sakti Production Sharing Contract (PSC) offshore East Java in Indonesia.

KrisEnergy said the block was close to its Bulu PSC and East Muriah PSC, where the Company is currently planning the development of the Lengo and East Lengo gas discoveries, respectively.

KrisEnergy director of business development Richard Lorentz said the company was continuing to grow its Indonesian asset base as it believed there were significant opportunities to discover new oil and gas resources.

“Sakti is a good fit with our gas aggregation plans to supply the thriving East Java market,” he said. “The area possesses all the required elements for hydrocarbon entrapment and earlier exploration drilling has indicated the presence of gas.”

The Sakti exploration block covers 497,400 hectares in the East Java Sea over the western margin of the East Java basin, Bawean Arch and the Muriah Trough, in waters of between 50 metres and 60 metres depth.

The PSC has an initial three-year term and an associated work commitment of 120,000 hectares of 2D seismic acquisition and processing, as well as one exploration well. The remaining 5% stake in the Sakti PSC is held by Golden Heaven Jaya.

The news came after KrisEnergy acquired 130,000 hectares of 2D seismic data over another of its operated contract areas – the East Muriah project in the East Java Sea.

Starting on 6 February, KrisEnergy used Nordic Maritime’s 3D seismic vessel the Nordic Bahari to acquire the data, which will precede the drilling of an appraisal well planned for the third quarter of 2014.

East Muriah, which contains the East Lengo gas discovery, covers 375,100 hectares offshore East Java over the East Java basin, in water depths of between 50 metres and 65 metres.

KrisEnergy director of exploration and production Chris Gibson-Robinson said the program would further delineate the East Lengo discovery and help confirm additional gas prospects in the block.

KrisEnergy holds a 50 per cent operating interest in the East Muriah PSC, with partner AWE holding the remaining 50%.