Where Explores See Potential Parallel Trend Chart (124306 bytes)
Exploratory drilling is starting to move northeastward from Papua New Guinea's main producing trend.
The Chevron Niugini group has drawn encouragement from the Makas 1X wildcat on southern highlands permit PPL 161 despite mechanical problems that forced a premature end to operations.
The Chevron group's Makas 1X well found oil and gas indications in formations immediately above the main Lower Cretaceous Toro sandstone target but could not test them or drill on to the principal objective.
However, preparations were made immediately to drill the Makas 2X and 3X appraisal wells on the large structure within the next three months. In addition, Chevron will drill Beaver 1X, a new wildcat in adjoining permit PPL 56, during the same timeframe.
Although it is too early to make definitive statements, geologists involved believe there is potential for a second "front" of oil and gas discoveries along a trend running parallel to the Iagifu-Hedinia-Gobe trend in the region.
The structure map shows that the petroleum indications at Makas and also at Paua to the northwest are directly on trend with the Beaver structure. What's more, five other structures on PPL 56 are undrilled.
Meanwhile, Chevron is drilling the Southeast Gobe 7 appraisal well on PPL 161 to firm up the estimate of oil reserves in Southeast Gobe field and help quantify production entitlements under the unitization agreement between the PPL 161 and PPL 56 groups. It is expected that a production license for the Gobe fields will be sought from the PNG government early in 1996, with oil coming on stream in 1988 at an initial rate of 50,000 b/d.
Meanwhile, Cue Energy Resources NL, whose principal asset is a 7% interest in PPL 56, was well along on a share offering aimed at raising $10 million (Australian) and obtaining a listing on the Australian Stock Exchange.
PPL 56 contains a large part of Southeast Gobe oil field and is the site of the forthcoming Beaver 1X exploratory well.
Cue also has a 14% interest in undeveloped Yolla gas/condensate discovery in the Bass basin off northern Tasmania.
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