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Horizon sees Papua New Guinea condensate project

By OGJ editors
HOUSTON, Oct. 28 -- The Stanley gas-condensate reservoir on PRL 4 in western Papua New Guinea could support a large condensate stripping-gas recycling development, but an investment decision won't be made until the Stanley-2 appraisal well is drilled, said Horizon Oil Ltd., Sydney.

Consulting engineers concluded that the Stanley Cretaceous Toro reservoir, discovered in 1999, could produce 140 MMcfd of gas from two wells, yielding more than 4,000 b/d of condensate and 40 tonnes/day of LPG. The project could recover more than 8 million bbl of condensate in 10 years and support a 4-in., 40-km flow line to the Kiunga river port for shipment to customers.

A stripping plant could start up in 2010 if Stanley-2 were drilled in 2009. The well is needed because continuity and connectivity of the productive gas sand is not assessed as high based on seismic mapping, pressure buildup during the production test, and the presence of the target sandstone in surrounding wells, Horizon Oil said.

The gas would be reinjected until a power generation market develops in 5 years or so in PNG's western province and across the border in West Papua, Indonesia. That market could account for the entire Stanley gas resource, estimated independently at 260 bcf proved and probable.

Horizon owns 100% interest in PRL 4 and 49.65% interest in PRL 5 to the east, which contains the Elevala and Ketu gas-condensate discoveries.

The company's focus shifted to the condensate project after owners of the Ok Tedi mine power project, a smaller gas market, advised of uncertainties with economics of switching to gas.


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