Friday, June 29, 2012

Western province gas field produces excellent results

Kina Petroleum Ltd (KPL) on Wednesday announced that its Ketu 2 gas condensate field at PRL (petroleum resource license) 21 in Western province had produced excellent results and is a strong candidate for development, The National reports.
The company, in an update to the Australian Stock Exchange (ASX) on Wednesday, said as a result of a recent review, KPL had assigned the field with an estimated mean contingent recoverable resource of 375 billion cubic feet (Bcf) of gas and 21.8 million barrels (MMbbl) of oil.
Ketu-2 had flowed gas at rates of over 20 million cubic feet of gas during testing by operator Horizon Oil.
This flow included condensate though this could not be measured accurately.
However, Horizon said this is expected to be in line with the 60 barrel of condensate per million cubic feet of gas ratio observed at Elevala-1.
Ketu-2 appears to have confirmed that the Ketu field has a lateral extent of at least 9km and a gas column height of over 50m, making it likely that a large upgrade to reserves is on the cards.
“The Ketu 2 well has produced excellent results and in conjunction with previously announced results from the Elevala/Tingu complex, have significantly raised expectation for development of a liquids project in PRL 21,” KPL managing director Richard Schroder said in an update to the ASX yesterday.
“The decision by the operator to begin early development studies for a liquids project is consistent with KPL’s view that an attractive development is emerging in PRL 21.”
KPL, in conjunction with its joint venture partners, continues to assess the mapping of the Elevala/Tingu complex after the drilling of Elevala 2 and Elevala 1.
KPL holds a 15% stake in PTL 21 with Horizon (45%), Talisman Energy Ltd (32.5%), and Diamond Gas Niugini B.V (7.5%).
“KPL’s volumetric calculations based on revised maps and new information presented by the operator have identified some positive differences in recoverable volumes calculated, and previously published, by KPL,” according to the update.
“KPL’s announcement of March 20, 2012, in respect of the Elevala/Tingu complex, advised an estimated mean contingent resource estimate of recoverable gas of 480BCF and 28MMbbls of condensate and a P10 estimate of 700BCF and 41MMbbls respectively.
“KPL’s latest estimates for the Elevala/Tingu complex are likely to be in excess of these volumes and require further technical discussions with the operator before they are released.”
The update said the overall outcome from the drilling of Ketu 2 and Elevala wells was that the estimated mean recoverable condensate resource for PRL 21 was now is excess of 50MMbbls of recoverable condensate, making a PRL 21 resource a strong candidate for development.
“The operator, Horizon Oil (Papua) Ltd has advised the PRL 21 JV (joint venture) that it will commence concept development studies in the second half of 2012, based on the successful results obtained so far within PRL 21,” according to the update.
“The PRL 21 JV is now also likely to drill the Tingu 1 well, with such well now expected to be drilled in the first half of 2013.”

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