Oil Search Ltd., Port Moresby and Sydney, reported success in its P’nyang South-2 ST1 appraisal well in P’nyang natural gas field in Papua New Guinea’s Northwest Highlands.
The well, drilled in retention license PRL3, reached a total depth of 2,725 m and encountered gas in good-quality Toro and Digimu sandstone reservoirs. However, the underlying Emuk sands were largely water-bearing.
Oil Search, as drilling operator, was pleased with the results, which confirm the extension of the large P’nyang field to the southeast.
Peter Botten, Oil Search managing director, said the company and its joint venture partners are now evaluating the well results, including the implications for 1C and 2C contingent gas resource volumes in the field.
Oil Search is confident that the drilling program’s primary objective—to migrate 2C contingent resources to the 1C category in this area—will be met and support marketing and financing activities for expansion of the Papua New Guinea LNG project.
A recertification of the field’s gas resources by an independent expert is under way. Results should be completed during this year’s second quarter.
The combine also is working with the Papua New Guinea department of petroleum to progress the offer of a petroleum development licence (APDL 13) over P’nyang field. Work is also continuing to select an optimal development concept for the field.
Oil Search has a 38.5% interest, with ExxonMobil Corp. holding 49% and Japan’s JX Nippon holding 12.5%.
