Thursday, May 10, 2012

Botten says P’nyang is next biggest LNG resource

Oil Search managing director Peter Botten says the P’nyang field in Western province – hailed as the next big gas field in PNG – is a “very interesting” resource, The National reports.
Botten, asked about the potential for P’nyang after the Oil Search annual general meeting in Port Moresby on Tuesday, was reserved but hinted that it had a lot of potential.

Peter Botten…a “very interesting” resource
“It’s relatively early days,” he said.
“It’s a significant resource in terms of the country.
“It’s a good resource.
“It’s a very interesting resource.”
P’nyang is among a number of appraisal, development and exploration wells that will be drilled across Oil Search’s PNG Highlands and Gulf licences over the next 18 months, as it embarks on the biggest drilling programme in its history.
Oil Search shares hit an all-time high two weeks ago because of significant gas discovery at P’nyang South sidetrack in Western province, according to investor relations manager Ann Diamont.
“The well extended the size of the known gas column at P’nyang South to 380 metres, with a potential additional up-dip upside, which could mean that the total gas column is over 650 metres,” Diamont said.
“It is subject to further evaluation, but it could help to underpin LNG expansion.”
An Oil Search drilling report says that on April 19, the P’nyang South 1 ST1 well was at a depth of 2,944 metres and undertaking a formation evaluation programme over the Toro sandstone.
“Based on the preliminary interpretation of data collected in both P’nyang South 1 and P’nyang South 1 ST1, the gas zone is interpreted to extend approximately 200 metres deeper than the lowest known gas in P’nyang South 1, indicating an increase in the total gas column to approximately 380 metres,” the report says.
“Seismic interpretation and structural mapping suggests additional up-dip potential above P’nyang South 1 and indicates a potential vertical gas column in the P’nyang South field of over 650 metres.”
P’nyang South is located four kilometres south-west of the P’nyang 1X gas discovery and approximately 90 kilometres north-west of the Juha gas field.
The participants in P’nyang South 1 ST1 are: Oil Search Ltd (38.5%), ExxonMobil affiliates (49%), JX Nippon (12.5%).

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