ANOTHER PAPUAN OIL DEVELOPMENT IN OFFING?

Prospects for another significant oil development project in Papua New Guinea's south central highlands have taken a big step forward. Tests late last month of a confirmation to the Command Petroleum Holdings NL group's 1 Southeast Gobe oil strike yielded flow rates more than double that of the discovery well.

Dec. 2, 1991

2 min read

Prospects for another significant oil development project in Papua New Guinea's south central highlands have taken a big step forward.

Tests late last month of a confirmation to the Command Petroleum Holdings NL group's 1 Southeast Gobe oil strike yielded flow rates more than double that of the discovery well.

The 2 Southeast Gobe flowed oil at a stabilized rate of 8,807 b/d and about 10 MMcfd of gas through 1-1/2 in. and 1-22/64 in. chokes with 455 psi wellhead pressure. A test earlier in the month flowed 4,488 b/d through a 1-1/2 in. choke with 255 psi wellhead pressure. The discovery well flowed as much as 4,000 b/d earlier this year.

The strong flow rates have raised expectations of an early development project because the Chevron Niugini Pty. Ltd. group's nearby Kutubu development project is due on stream in mid-1992. The Kutubu project, involving Iagifu/Hedinia oil fields on Petroleum Prospecting License 100, includes a pipeline to the Papuan Gulf that passes within a short distance of the Gobe finds (see map, OGJ, Apr. 8, p. 34).

Both Gobe wells were drilled on PPL 56. However, the structure overlaps the permit boundary with PPL 100, where tentative plans call for a second delineation well to spud in first quarter 1992.

Preliminary oil reserve estimates are 30-150 million bbl.

Operator Command, Sydney, Australia, holds a 20% interest in the block. Other interests are held by Southern Highlands Petroleum Co. Ltd. 50.5%, MIM Holdings Ltd. 20%, Nomeco PNG Oil Co. 7%, and Mountains West Exploration 2.5%.

That's changed slightly from an earlier breakout.