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Malaysia's SapuraKencana announces more gas discoveries in East Malaysia

[KUALA LUMPUR] SapuraKencana Petroleum Bhd, Malaysia's biggest oil and gas services company by market value, on Tuesday announced two natural gas discoveries offshore East Malaysia.

The Jerun-1 discovery well struck a gross gas column of about 800 meters and "is a multi-tcf (trillion cubic feet) gas discovery," it said in a local stock exchange filing.

A second well, the Jeremin-1, found a 104-metre gross gas column, said the statement, adding that both wells are close to existing infrastructure which supplies gas to Bintulu, Sarawak. Bintulu is the location of a large liquefied natural gas export terminal.

The wells are located in the Block SK408 production sharing contract area.

The new gas discoveries will add another 3 tcf of gas to the existing 3 tcf previously found in the Block SK408 area, said a source familiar with the drilling project.

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The wells were drilled by SapuraKencana Energy as part of a three well drilling program in Block SK408 as exploration operator.

SapuraKencana holds a 40 per cent stake in the block, along with Petronas Carigali Sdn Bhd and Sarawak Shell Bhd who hold 30 per cent each.


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