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TRACER SIGNS INDONESIAN PRODUCTION SHARING CONTRACT; NORTH TANJUNG BLOCK EXPLORATION TO COMMENCE SOON

 VANCOUVER, B.C., March 3 /PRNewswire/ -- Tracer Petroleum Corporation (NASDAQ: TCXXF) announced today that its wholly owned subsidiary PerminTracer Petroleum Ltd. has signed a production sharing contract (PSC) for petroleum exploration and production rights to the North Tanjung Block in Indonesia. The PSC was signed by Pertamina, the Indonesian state oil company, and the Minister of Mines and Energy of the Republic of Indonesia in a ceremony in Jakarta last Saturday.
 The 1.6 million acre North Tanjung Block is located onshore the island of Borneo in the Indonesian provinces of Central and South Kalimantan. The block is part of a large petroleum producing area formerly reserved and controlled exclusively by Pertamina. The block has never before been held by a foreign production sharing contractor.
 The block is located five kilometers north of Pertamina's Tanjung Field, which began producing oil in 1938 from Eocene Lower Tanjung Formation sandstones and peaked in 1963 at 49,000 BOPD. An underutilized 20 inch oil pipeline extends from Tanjung Field across the eastern part of the North Tanjung Block to a refinery 120 miles away in the city of Balikpapan.
 The North Tanjung Block can be characterized as a lower exploration risk area due primarily to the nearby, and on-trend, presence of the major Tanjung oil fields. This proximity lends strong support to the potential prospectivity of the block. Potential field size in the North Tanjung Block is most likely in the 100-500 million barrel range.
 Three distinct areas of the block are considered highly prospective and eight different play types are recognized. A Tracer exploration team has been at work evaluating and interpreting available data from the block for over a year. They have identified 21 prospects and leads, including two very large and highly promising structures that are targeted for first drilling.
 Terms of the PSC call for Tracer to pay U.S.$1 million signature bonus and undertake a three year work program amounting to not less than a U.S.$9.1 million investment. Tracer's current plans include a 200 line kilometer seismic acquisition program and drilling of at least three exploration wells.
 Tracer's unit PerminTracer Petroleum Ltd. owns a 100 percent interest in the North Tanjung PSC.
 -0- 3/3/93
 /CONTACT: Gary R. Schell or Craig Doctor of Tracer Petroleum, 604-682-7507, or 800-488-6303/
 (TCXXF)


CO: Tracer Petroleum Corporation; PerminTracer Petroleum Ltd.;
 Pertamina ST: IN: OIL SU: CON


SH-PS -- NY007 -- 2282 03/03/93 08:30 EST
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Publication:PR Newswire
Date:Mar 3, 1993
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