The farmin strategies of Santos have been vindicated with the company making a new wildcat gas discovery in its Indonesian block offshore Madura Island, East Java. Santos contributed 100% of the dry hole cost of the well to earn a 75% interest in the Madura Offshore PSC.

Santos said Maleo-1, which was drilled on the flank of a large four-way dip structure, encountered a 48 metre gross gas column in the interval between 555 and 603 metres in the Early Pliocene Mundu Formation limestone.

According to Santos the reservoir is well developed and net pay is in excess of 95 per cent. Flow testing of Maleo-1 is currently being conducted. The well has been cased and perforated and is on clean-up flow.

"The Maleo discovery is well situated, approximately 7 kilometres from existing gas pipeline infrastructure supplying Surabaya, enhancing the chances of commerciality," said Santos' managing director, John Ellice-Flint.

"Further appraisal activity is required to determine the resource potential of this discovery."

Drilling of the Maleo-1 well follows the Oyong oil and gas discovery made in the Sampang PSC in August last year and the subsequent farm-in to the Madura Offshore PSC.

Maleo-1 is located approximately 140 kilometres east of Surabaya in 58 metres of water. Participants in the Madura Offshore PSC are Santos (Madura Offshore) 75% (operator) and Talisman (Madura) 25%.

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