Tuesday, July 06, 2010

New Guinea Energy spuds first exploration well

NEW Guinea Energy (NGE) spudded its first exploration well at Panakawa oil prospecting licence in Gulf province last June 25, according to a statement to the Australian Stock Exchange yesterday, The National reports.

The drilling programme is managed by contractor Australian Drilling Services, using its contracted rig #6.

Work has been progressing well for the last 10 days

The Panakawa oil prospect is located in PPL 267.

It was initially identified as a lead from the Yalis phase I seismic survey completed in 2006, and further delineated by the Yalis phase II seismic survey (Q3 2008).

The prospect underlies the Panakawa oil seep which has a surface measured flow rate of five barrels of oil per day of 35°API oil and is ideally located less than 1km from Rimbunan Hijau’s Panakawa logging and veneer plant wharf.

The statement said the Panakawa-1 well was targeting the lower cretaceous toro formation sandstone and several secondary reservoirs.

Proposed total depth of the well is 2,323m in basement.

The company expects the well to require approximately 30 days drilling.

NGE is the sole owner of PPL 276.

The company said apart from PPL 276, NGE also has five other onshore petroleum prospecting licences (PPLs) covering more than 52,000sqkm (including PPL 276).

These PPLs contain an excellent exploration inventory of 59 prospects and leads, which include six drillable prospects.

Ten top leads are currently being evaluated for upgrading to drillable prospect status.

The oil-and-gas-focused explorer raised US$18.5 million (K49 million) early this year by a placement of 112,121,210 shares at US$0.165 per share to sophisticated or professional investors, it said.

The fundraising was managed by Bell Potter Securities Ltd and was strongly supported by both institutional and sophisticated retail investors.

The shares issued will rank equally with existing ordinary fully-paid shares on issue, with shareholders approving the matter at a meeting last week.

NGE is partly-owned by Sir Michael Bromely, a PNG-based businessman who, at one time, ran one of the Highlands’ region’s large supermarket chains – the Bromley and Manton.

 

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