GEOLOGY

General

The Senoro field which operated under the contract area of JOB PERTAMINA
MEDCO TOMORI SULAWESI is situated in the onshore area of the Senoro-Toili
Block in the eastern arm of Central Sulawesi within the Tertiary Banggai Basin (see
Figure -2.1).

Senoro Field was discovered in 1999 by drilling of the Senoro-1 an exploratory well.
Four delineation wells i.e.: Senoro-2/2ST, Senoro-3, Senoro-4 and Senoro-5 had
been subsequently drilled in the Senoro structural closure.

The Senoro-1 was drilled by JOB Pertamina-ARCO-UTTI in 1999 and encountered

net gas column of 665 feet and 33 feet oil leg within the Late Miocene Mantawa
Reefal carbonate reservoir. The wireline log data indicates that the reservoir has a
good to excellent porosity and permeability.

The Senoro-2/2ST was drilled by JOB Pertamina-Medco E&P in 2001 and reached a
total depth of 8340 feet MD-RT (-8295 feet TVD-Subsea). The well has penetrated
780 feet of the Mantawa reef limestone member, and encountered a 678 feet gas
column with 60 feet oil leg. The Mentawa reef limestone section has a good to
excellent porosity, with average porosity of 26 %. The well has penetrated the gas oil
contact at 6536 feet TVD-RT (-6496 feet TVD-Subsea, and oil water contact or free
water level at 6562 feet TVD-RT (-6522 feet TVD-Subsea). The cased hole DSTs
performed in the Senoro-2ST flowed 20.3 MMSCFD gas with condensate yield of 22
BBL/MMSCF.

2.1
At the southern part of Senoro Field, the Mantawa reef buildup is not well developed
and the facies changed to interbedded limestone and claystone, and hereinafter
refered to as Stratigraphic Sequence. The Senoro-3 appraisal well was drilled in
2002, and has proved a 160 feet gas column in Minahaki bioclastic limestones. A
cased hole DSTs that has been performed at Minahaki limestone produced gas at
12.2 MMMCFD and condensate of 19.4 BBL/MMCFD.

The Senoro-4 development well was drilled by JOB Pertamina-Medco E&P in

December 2005 and reached a total depth of 6953 feet MD-RT (6749 feet TVD or -
6719 feet TVD-Subsea). The well is situated in the saddle area within the middle of
Senoro Gas Field, an approximately 2.7 km Southwest of Senoro-2/2ST and 4.6 km
Northeast of Senoro-3 wells. The well penetrated through the Minahaki Bioclastic
Limestone at 6644 feet MD-RT (6467 feet TVD-RT or -6437 feet TVD-Subsea). Drill
Stem Test was performed at the interval 6674-6690 feet MD (DST#1) and flowed
0.37 MMSCFGD and 777 BWPD on choke 32/64, and at interval 6674-6678 feet
MD and flowed 0.63 MMSCFGD and 491 BWPD on choke 32/64. Based on log
interpretation result conducted in the Bioclastic Limestone of Minahaki Formation, it
indicates a 12 feet net pay with an average porosity of 18% and average water
saturation of 53.82%.

The Senoro-5 delineation well was drilled by JOB Pertamina-Medco E&P in March
2007 and reached a total depth of 6700 feet MD-RT (6699 feet TVD or -6665 feet
TVD-Subsea). The well is located in the northern part of Senoro structure, and was
encountered a Mantawa Reef buildup at 5966 feet MD-RT (5965 feet TVD or -5931
feet TVD-Subsea) and Minahaki Platform Formation at 6548 feet MD-RT (6547 feet
TVD or -6513 feet TVD-Subsea). Log analysis conducted within the Mantawa Reef
buildup at intervals 5966 to 6548 feet MD indicated a 582 feet hydrocarbon column,
composed of 569 feet gas net pay, with an average porosity of 14 to 29 % and
average water saturation of 20 %, plus 13 feet of oil zone, having an average
porosity of 20 to 28 % and average water saturation of 40 %.

Based on the above five wells information, more than thirty Pre-Stack Depth
Migration (PSDM) seismic data, thirty one seismic inversion data and others data,
LEMIGAS has conducted the Hydrocarbon Reserves Sertification Study of Senoro
2.2
Field. The geological and geophysical evaluation for this sertification work were
reported as follows.

Figure-2.1 : Location map of Senoro Field, Senoro-Toili Block.

Regional Geology

Tectonic Setting

The Senoro-Toili Block is situated along the tectonically complex eastern arm of
Sulawesi and includes part of a collision complex formed during the Miocene.
Product of the collision of Banggai-Sula Micro-continental plate and a Tertiary non-
volcanic arc forming what is currently known as Central Sulawesi. The Senoro field is
within one of the thrust sheets produced by this collision process. Geological
evolution of the Banggai-Sula micro-continent is closely related to the evolution of
the northern margin of the Australia-New Guinea continental plate, which formed
during the Mesozoic break-up of Gondwana. Reorientation of Eurasia, Pacific and
Indoaustralian plates promotes the westwards drift of the northern Australian
continental margin in the form of a sliver micro-continent through the south Sula-

2.3
Sorong Fault (Figure-2.2). During the westward drift of the Banggai-Sula micro-
continent, an aerially extensive Miocene carbonate shelf with localized reef growth
developed along the microcontinental margin. The Miocene carbonate shelf has
been identified as the Salodik Group and comprises the Tomori, Matindok and
Minahaki formations. In the Late Miocene, the Banggai-Sula micro-continental shelf
approached the eastern part of proto-Sulawesi and induced a collision system, which
is manifested by an Ophiolite Belt, resulted in folding, thrusting and imbricating
structures of micro-continental shelf sections, and creation of a foreland basin
controlled by thrust loading. Presently, there are three principal exploration play
types found in the Senoro-Toili Block: Miocene carbonate buildup, wrench fault
anticline and thrusted anticline. The carbonate buildup and wrench anticline play
types are present in the Senoro area, while a thrusted anticline type is found at the
offshore Toili area. The thrusted anticline type play involves structural closure at the
leading edges of a series of imbricate thrust sheets of Miocene Carbonates in the
offshore Toili area at the southern part of the Senoro-Toili Block (Figure-2.3).

Figure-2.2 : Banggai basin regional tectonic setting.

2.4
 Figure-2.3 : Play types of Senoro Toili Block, Banggai Basin.

Stratigraphy

The stratigraphy of Eastern Sulawesi is related to two distinct depositional time

periods. Firstly representing a continental margin rift / drift sequence of Banggai-Sula
deposition prior to the collision, and secondly representing a foreland basin flysch-
molasse sequences, deposited in front of an easterly-migrating thrust front after
collision had occurred. A generalized stratigraphic column of the Tomori-Banggai
Basin is presented in Figure-2.4.

The basement rocks of the Banggai-Sula micro-continent are primarily schists and
granites of Permo-Triassic ages. Granitic basement rock was encountered by
Mentawa-1, Minahaki-1, Matindok-1, Donggi-1 and Sukamaju-1 exploration wells
located in adjacent of Senoro Area. The schistose basement was encountered in the
sub-thrust section of the Tiaka-2 and Tiaka-3 wells within the Toili Area at southern
offshore area.

2.5
Various of the Mesozoic rocks have been recorded from the outcrops at the onshore
East Sulawesi and Peleng area. However, no Mesozoic sedimentary section has
been encountered in the wells drilled to date.

Basement is overlain locally by thin the Late Eocene Early Oligocene basal clastics
and carbonates, and regionally by a thick section of the Miocene carbonates and
clastics, namely the Soladik Group. This carbonate group includes the Tomori,
Matindok, Minahaki and Stratigraphic Sequences.

Tomori Formation, which is essentially of the Lower Miocene age, consists

predominantly of shallow-water bioclastic platform limestones, occasionally
dolomitic, with minor claystones and coals. The Tomori Formation formed a reservoir
for oil accumulation in the Tiaka field. Its also contain good to excellent potensial
source rocks, which are believed to be the origin of the hydrocarbons in the Senoro-
Toili Block and other structures in the Eastern Sulawesi area.

The Matindok Formation is Middle Miocene age consists predominatly of claystone

and shale with sandstone, limestone and coal. Shale and coals within this unit
indicate fair potential gas prone source rocks as recorded in Matindok-1 and Senoro-
2/2ST wells.

The Minahaki Formation in the Senoro area and adjacent areas consists of clean
platform facies limestones and dolomites of Upper Miocene age, which is capped at
the top by reefal buildup namely Mentawa Member, and basinal facies limestone,
marl and claystone namely Stratigraphic Sequence. The Minahaki bioclastic
limestone platform facies provide a good productive gas reservoirs in the Matindok-1
and Senoro-3 wells, while Mentawa reefal buildups provide an excellent productive
gas reservoirs at Senoro-1, Senoro-2/2ST, and Senoro-5 wells. Similar reefal buildup
facies with good reservoir characteristics are recognized in the adjacent area of
Senoro field, such as in the Mentawa-1, Minahaki-1, Donggi-1 and Sukamaju-1
wells.

The Stratigraphic Sequence which is recorded in the Senoro-3 well, consists of marl
and calcareous claystones with interbedded limestone ages the latest Late Miocene
2.6
to earliest Early Pliocene age (NN10 NN12). Seismic evidence indicates the
formation is correlated and inter-fingered with the Mentawa reef section at Senoro-
2/2ST. At Senoro-3 well, the limestone found at the top part of the Stratigraphic
Sequence, although thin, it forms a good gas reservoir.

The Miocene Carbonates are overlain by the Early Pliocene to Pleistocene Sulawesi
Group sediments (formerly reffered to as the Celebes Molasse), which consists of
rapidly deposited, poorly sorted, coarse and fine clastics, and predominantly
ultramafic material derived from the obducted ophiolites. The Sulawesi Group
consists of the flysch facies sediments of Kintom Formation and the molasse
sediments of sandstone and conglomerate, namely Biak and Kalomba Formations.
Above Kalomba conglomerates are deposited during Pleistocene to present-day
limestones of Luwuk Formation.

Figure-2.4 : A generalized stratigraphic column of

SenoroToili Block, Banggai Basin.

2.7