Wednesday, May 02, 2012

P’nyang South drives up Oil Search

By MALUM NALU
Oil Search Ltd shares hitting an all-time high last week was because of significant gas discovery at P’nyang South sidetrack in Western province, according to investor relations manager Ann Diamont, The National reports.
She told The National yesterday (Tuesday) that the shares rallied following the announcement of a significant gas discovery at P’nyang South sidetrack.
“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.
“In addition, our results for the first quarter of 2012 were better than market expectations.
“Even though we had a planned 16 day shutdown at the production facilities to undertake PNG LNG modification work, our revenues were only 7% lower than in the fourth quarter, due to high oil prices and improved gas revenues.
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%).
Oil Search is drilling the P’nyang South well under contract with the Operator, Esso PNG P’nyang Ltd.

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