STOCKHOLM, Sweden, July 30 (UPI) -- Swedish energy company Lundin Petroleum said Tuesday it was pleased with the resource potential in acreage off the coast of Indonesia.
Lundin said it amended a production sharing contract for work in Indonesia. The contract swaps out work in the Sareba area because it was recently designated a nature conservation area. The new contract covers the Cendrawasih VII block, a 2,140-square-mile area off the northeast Indonesian coast.
Cendrawasih is considered frontier territory with undeveloped natural gas reserves in shallow waters.
Lundin Chief Executive Officer Ashley Heppenstall said the amendment solidifies his company's position in Indonesia and South East Asia.
"We are particularly encouraged by the prospectivity of the Cendrawasih VII block and securing this acreage provides us with the chance to continue with our exploration activities," he said.
Lundin serves as the operator a five reserve areas in Indonesia and holds an interest in onshore natural gas acreage. The company said it plans to conduct a seismic assessment of the new acreage to get a better understanding of the reserve potential before moving ahead with a drilling campaign.