Japan’s Inpex said Tuesday it made a new oil discovery at its Bestari-1 exploration well in offshore Malaysia.
Preliminary findings at the well, located in Deepwater Block R, point to a column of oil-bearing sands across multiple horizons measuring about 229 feet.
Block R is located in offshore East Malaysia and covers 259 square miles in water depths ranging from 328 feet to 4,593 feet.
Inpex and its partners will now analyze and evaluate data retrieved from the well and proceed with plans to drill two exploratory wells to assess the possibility of new oil and natural gas deposits.
Inpex holds a 27.5 percent participating interest in the block through its wholly-owned subsidiary Inpex Offshore South West Sabah.
Japan’s JX Nippon holds a 27.5 percent operating interest in the block, Malaysia’s Petronas holds a 25 percent interest and Santos Sabah Block R Limited holds a 20 percent interest.
Japan Oil, Gas and Metals National Corporation will cover up to 50 percent of exploration expenditures incurred by Inpex Offshore South West Sabah through equity capital.