BLACK PLATINUM ENERGY LTD

Black Platinum Energy announces preparation of

the Dara East Gas Field PPoD in the North Sokang
PSC

Following Black Platinum Energy’s recent announcement of a significant

increase in the discovered Dara East Gas Field P50 GIIP volume to 1,495
Bscf, the Company has completed a Preliminary Plan of Development
('PPoD') by LR Senergy for the Dara East Gas Field located in the East
Natuna Sea.
The Dara East Gas Field is located in 110m of water some 190km East of
Natuna Island, which is the nearest landfall to be used as a shore base and for
support facilities.

Preliminary Plan of Development & Field Design

The Company’s initial plans for the Dara East Gas Field Phase-1 PPoD is to drill
and complete four (4) subsea wells, and twelve (12) wells from four (4) well
head platforms, targeting the two main reservoirs (UP-1A and LP-6). The wells
have directional - horizontal profiles targeting 500m reservoir penetration.
Secondary targets exist (in the UP 3 & UP 4) which we be flowed from the LP-6
wells as a later life contribution to production.

The Company’s PPoD includes a central Floating Processing Unit (FPU) and
satellite Wellhead Platforms (WHPs). The produced gas would be exported via a
new built 360km pipeline (third party owned and operated with a tolling fee for

BLACK PLATINUM ENERGY LTD

Representative Office
Plaza City View 2nd Floor,
www.blackplatinumenergy.com  Jl. Kemang Timur No. 22 Jakarta 12510,
Indonesia
Phone: 6221–718 3518Fax: 6221–718 3520
BLACK PLATINUM ENERGY LTD
Stevenson Delhomme Suites, Le Chantier
Victoria, Mahe, Mahe Island, Seychelles
  
BLACK PLATINUM ENERGY LTD

the produced Dara East gas) for tie-in to the West Natuna Transport System
(WNTS). The main elements of the proposed Dara East Gas Field facilities are:

 A total of 23 wells;
o 18 off platform wells
o 5 off Subsea tie-back wells
 6 normally unmanned Well Head Platforms;
 Infield flowlines and umbilicals;
 Central Processing FPU (owned and operated by others); and
 Tie-in to main Export Trunkline to WNTS (owned and operated by others)

An alternative development concept exists which involves replacing the FPU &
Pipeline with a FLNG vessel.

Gas Market & Price

Meanwhile, the Company recently completed an 'East Natuna Gas Monetization
Study' conducted by Wood Mackenzie which identified four 'Tier 1' gas
monetisation options for Dara East gas which are:

 Singapore pipeline gas sales into power and industry segments;

 Batam pipeline gas sales into power and industry segments (2 options);
 FLNG long-term LNG sales to Asia-Pacific

The Study concludes that there is a market for East Natuna gas in Singapore
and Batam for piped gas and long-term LNG sales to Asia-Pacific. The gas can
be sold at a price attractive enough to support a Dara East Gas Field
development at expected or forecasted international piped gas and domestic
prices (provided by the new Government of Indonesian domestic gas
regulation) or international LNG prices.

Way Forward
The Company intends to aggressively seek potential Partners/Investors who
can jointly develop and exploit the Dara East Gas Field before proceeding
further to the submission of a formal PoD to the Government of Indonesia
(“GoI”) and undertaking other firm development activities. Specifically, the
Company plans to work with potential Partners/Investors on an optimal plan to
begin development & production of the Dara East Gas Field which will include
such activities as:

1. Review and approving the existing PPoD and preliminary drilling and
facilities engineering;

2. Deciding on a commercialization option e.g. FPU & Pipeline or FLNG

solution;

BLACK PLATINUM ENERGY LTD

Representative Office
Plaza City View 2nd Floor,
www.blackplatinumenergy.com  Jl. Kemang Timur No. 22 Jakarta 12510,
Indonesia
Phone: 6221–718 3518Fax: 6221–718 3520
BLACK PLATINUM ENERGY LTD
Stevenson Delhomme Suites, Le Chantier
Victoria, Mahe, Mahe Island, Seychelles
  
BLACK PLATINUM ENERGY LTD

3. Confirming gas markets and engaging with potential gas buyers; and

4. Undertaking a resource verification and reserve certification by the

Indonesian Research and Development Center for Oil and Gas Technology
(commonly referred to as LEMIGAS).

Larry Luckey, Acting CEO of BPE commented:

'Capital expenditures for the Dara East Gas Field development are
estimated at USD$400 million with recoverable resources estimated at
911 Bscf. The Dara Gas Field would be the first development in the East
Natuna area with first gas as early as 2022/23 and could become a
backbone for further development of oil and gas in East Natuna.
Further, the Dara East Gas Field development offers existing
Indonesian PSC Operators or new entry players and excellent low
cost/high growth opportunity in a strategic area'.

  

BLACK PLATINUM ENERGY LTD

Representative Office
Plaza City View 2nd Floor,
www.blackplatinumenergy.com  Jl. Kemang Timur No. 22 Jakarta 12510,
Indonesia
Phone: 6221–718 3518Fax: 6221–718 3520
BLACK PLATINUM ENERGY LTD
Stevenson Delhomme Suites, Le Chantier
Victoria, Mahe, Mahe Island, Seychelles