A unit of MIM Holdings Ltd., Brisbane, has assumed operatorship of a Papua New Guinea exploration permit where a group of companies recently drilled a sizable oil strike.
Barracuda Pty. Ltd., with a 20% interest, takes over as operator of Exploration Permit PPL 56 from previous operator Command Petroleum Holdings Ltd.
Command will remain in the group with a 20% interest.
MIM said the group will drill at least one and probably two more appraisal wells to the discovery in 1992.
The 1 Southeast Gobe discovery well flowed 4,250 b/d of oil in April, and the 2 Southeast Gobe step-out flowed 8,907 b/d (OGJ, Dec. 2, 1991, p. 26).
The group has another 2 years under permit terms to conduct appraisal drilling, feasibility studies, and environmental studies needed to apply for a development permit.
Other interests are held by Southern Highlands Petroleum-consisting of Nippon Mining, Japan National Oil Corp., Teikoku Oil Co., and Japan Petroleum Exploration Co.-50.5%, Nomeco PNG OH Co. 7%, and Mountain West Exploration 2.5%.
Papua New Guinea is expected to join the ranks of oil exporting nations in September 1992, when a group led by Chevron Corp. starts up the 100,000 b/d Kutubu project, also in the country's south central highlands. The pipeline from that development to the export terminal on the Papuan Gulf passes within a short distance of the Gobe strikes.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
