Appraisal drilling and testing has confirmed the Pegaga discovery in Block SK320 offshore Malaysia as a substantial gas find with significant commercial potential, Mubadala Petroleum said in a news release.

Another discovery, Sirih-1, also has been confirmed from the 2013-2014 exploration drilling program that has targeted a series of carbonate pinnacles within Block SK320. This adds to the Pegaga-1 and Sintok-1 discoveries announced previously and the existing M5 discovery that Mubadala Petroleum appraised in 2012.

The Pegaga-2 appraisal well was drilled to a total depth of 2,685 m (8,809 ft) and confirmed an 850-m (2,789-ft) gas column. Testing of the main gas-bearing zones produced flow rates of 850 Mcm/d to 1.4 MMcm/d (30 MMcf/d to 50 MMcf/d) of good quality gas with condensate. Pegaga lies in 109 m (358 ft) of water.

The Sirih-1 well, adjacent to the Sintok discovery, was drilled to a total depth of 3,000 m (9,843 ft) into the main target reservoir and penetrated a 293-m (961-ft) gas column. Sirih-1 was plugged and abandoned as planned.

Mubadala is operator of the block with 55% interest. The other partners are Petronas Carigali with 25% and Sarawak Shell Berhad with 20%.