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+--- Thread: I thought Flinders was a dud! (/showthread.php?tid=3813)
I thought Flinders was a dud! - Palm - 06-04-2013
OSH is ready to drill offshore well #2. The first well, Flinders 1, was pretty much billed as a flop, but the OSH fans at The National say otherwise. If Flinders 1 was a success, IOC'S wells are obviously what they are billed to be; top 5% in the world!
OSL to drill second offshore well
Source:
The National, Tuesday 4th June 2013
OIL Search Ltd (OSL) is preparing to drill Hagana 1 located offshore in the Gulf of Papua, 260km northwest of Port Moresby.
Hagana 1 will be the second well in Oil Search’s offshore drilling campaign, and follows the successful Flinders 1 well (WHAT?!!!!) which has recently discovered gas in the target Pliocene reservoir.
Flinders 1 was the first well to be drilled in the offshore Gulf region in over a decade and has proven the gas bearing potential of the area.
Oil Search has identified more than 30 prospects and leads in the Gulf area through the use of new and advanced technology.
In 2011 and last year, the company acquired two high quality, long offset 3D seismic surveys, the first major 3D seismic to be shot in PNG.
To augment the 3D seismic data, Oil Search commissioned an offshore geophysical experimental survey using “controlled source electro magnetic“ (CSEM) technology.
The CSEM employs electromagnetic remote-sensing technology to indicate the presence and extent of oil and gas below the seabed.
Oil Search’s drilling campaign comprises two firm wells, Flinders 1 and Hagana 1, with the option to drill two more wells.
The company’s joint venture partners include French multi-national Total SA and Nippon Oil Exploration (Niugini) Pty Ltd.
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RE: I thought Flinders was a dud! - petrengr1 - 06-04-2013
Nothing great here to write home about. A thin gas zone in an offshore well is not worth developing. They will have to do more work and look for the zone to be thicker up dip if they have any up dip reservoir.
Here are the last three drilling reports.
DRILLING REPORT – 23 May 2013
WELL NAME: Flinders 1, PNG
Oil Search reports that as at 06:00 hours PNG time on 23 May, the
Flinders 1 well was in the final stages of abandonment. During the week,
a notice confirming the discovery of gas at Flinders was submitted to the
PNG authorities.
The Stena Clyde rig will now move to the Hagana prospect located
approximately 10 kilometres east of Flinders.
DRILLING REPORT – 16 May 2013
WELL NAME: Flinders 1, PNG
Oil Search reports that as at 06:00 hours PNG time on 16 May, the
Flinders 1 well was at a depth of 3,275 metres and preparations were
being made to plug and abandon the well. Drilling progress for the week
was 47 metres.
During the week, a full set of wireline logs was acquired over the open
hole section of the well. Preliminary evaluation of the data indicates that
the targeted Flinders sand package is more than 50 metres thick and has
good reservoir properties. Preliminary log analysis has identified an
interval of gas in a thin, good quality sandstone at the top of the
intersected Flinders package. Pressure data indicates a 5-10 metre gas
column in the well. There is potential for the gas-bearing interval to
extend over the broader Flinders structure updip of the Flinders 1 well
location and work is ongoing to evaluate this potential.
The presence of hydrocarbon-bearing sandstones at Flinders has de-risked
two of the main uncertainties in the basin-floor fan sandstone play,
confirming the broader potential of the Pliocene stratigraphic level in the
Gulf of Papua. The data gathered will allow the seismic data over the area
to be calibrated for the first time with real rock data and will enable a
thorough analysis of not only the Flinders discovery, but also other
prospective locations in our licences.
Following the completion of activities at Flinders, the rig will move to the
Hagana 1 location, approximately 10 kilometres east of Flinders.
DRILLING REPORT – 9 May 2013
WELL NAME: Flinders 1, PNG
Oil Search reports that as at 06:00 hours PNG time on 9 May, the Flinders
1 well was at a depth of 3,228 metres and circulating out conditioning
mud prior to drilling ahead.
During the week, a number of sand bodies were intersected at the target
level, but with no significant hydrocarbon shows. The sands will be fully
evaluated once total depth is reached. Drilling progress for the week was
511 metres.
The Flinders prospect, which lies approximately 235 kilometres westnorthwest of Port Moresby, is in a water depth of approximately 100
metres. The primary objective is a submarine, basin-floor fan sandstone of
Pliocene age.
RE: I thought Flinders was a dud! - Palm - 06-04-2013
That's what I remember. About enough gas at Flinders1 to stage a fake IOC flare-fest. Any estimates Pet on the chances they'll find much at this next location? If it's also disappointing we might see Total getting an itchy trigger finger.
RE: I thought Flinders was a dud! - Palm - 06-04-2013
Of course there is a very important reason that OSH is at least perceived as being successful to the point that their pps appreciates:
"Oil Search shares were trading at $8.02 by 12.38pm, up 4.2%. If they surpass $8.55 by early 2014 the PNG government will not have to pay any additional money to the Abu Dhabi government-owned International Petroleum Investment Corporation (IPIC).
In 2008 the government agreed to exchange its 17.756% shareholding of Oil Search to IPIC in exchange for about $US1.68 billion upfront.
Under this deal the government agreed to pay for any shortfall in the agreed share value of $8.55 each by early 2014.
The transaction provided the government with a large amount of the money required to fund its 19.4% share of PNG LNG project development costs, and came during a difficult lending climate. "
May be why OSH has suddenly turned friendly toward IOC. Joint seismic work that shows Tri extending into the OSH/Kina Petroleum license might just cause a timely pop in the OSH pps.
RE: I thought Flinders was a dud! - petrengr1 - 06-04-2013
'Palm' pid='23690' datel Wrote:That's what I remember. About enough gas at Flinders1 to stage a fake IOC flare-fest. Any estimates Pet on the chances they'll find much at this next location? If it's also disappointing we might see Total getting an itchy trigger finger.
It appears that the next well will hit these sands deeper but that does not meant they will be wet since this is several km away from Flinders and is a separate structure. We will have to wait and see what they find.