Oil Search fails to hit gas at Hides well in Papua New Guinea

[melmel]

too bad....

http://in.reuters.com/article/2015/03/06...UW20150306

(Reuters) - Oil Search Ltd said on Friday it failed to find a gas reservoir in exploration drilling at its Hides field, closing off one option for supplying an expansion of the Papua New Guinea liquefied natural gas (LNG) plant.

The Papua New Guinea (PNG) LNG plant, operated by ExxonMobil Corp, began exporting LNG last year from two trains, or modules that freeze the gas, and the owners are looking to line up new sources of gas for a third train.

Oil Search and its partner Santos said the Hides Deep well, drilled down to 4,633 metres, had found lots of sandstone intervals, but they contained water.

Oil Search had hoped to find a reservoir that was about 700 metres deeper than the existing main producing reservoir.

"It would have been great, because it would have been a discovery right smack underneath where they have their infrastructure," said RBC analyst Andrew Williams.

"It's disappointing, but you just go on to the next (exploration well). The country is quite literally gas prone."

Oil Search's P'nyang field is seen as a promising source for a PNG LNG expansion.

Oil Search shares fell as much as 4.2 percent after the announcement, but have been holding up better than Santos' shares, which have been battered over the past six months. Santos fell 0.2 percent on Friday. (Reporting by Sonali Paul; Editing by Himani Sarkar)

[jft310]

Oil Search has a terrible track record finding assets as this article clearly shows. Most of their assets were bought from Chevron when they left the island . Betting on P'nang is another crap shoot for them .

ring ring -Hello Dr Hession ...?.are free for dinner later this week??????

and these guys are gonna take over drilling from Interoil .?... Maybe not !!!LOL Botten ..

[Palm]

Hides was considered a very high % prospect. Mentioned this the other day: what if they don't hit or find less than expected? P'nyang is more remote and never been tapped. It now is way more important for several reasons.

[jft310]

Oil Search should use their new partnership and ask Dave Holland and Laurie to come over have a look at seismics etc before spending dime one on drilling.
Oil Search has been behind much of the Interoil problems on PNG . Look who comes out looking good !!!we could have been monetized years ago if they had played fair . Yes there is bad blood between Oil Search and Interoil and Interoil can prove why there is bad blood.
Today alas Oil Search has no real say in Interoil's future. Vote anyway they want but Total and Interoil together will determine what the best way is to develop the assets (plural).

[Tusker]

Combine that with the exploration failure of OSH off shore program, it makes those 5 consecutive discoveries in the EPB notable.

TVD Hides Deep is some ~4633M Sand and water. TVD Raptor ~4009M and we find lime stone carrier bed and condensates.

[sageo]

Combine that with the exploration failure of OSH off shore program, it makes those 5 consecutive discoveries in the EPB notable. TVD Hides Deep is some ~4633M Sand and water. TVD Raptor ~4009M and we find lime stone carrier bed and condensates.

Tusker- And .......when we go down-dip slightly toward the se with Raptor#2, the 4633m for us is likely much more productive ! Mucho hydrocarbons I firmly believe. Good luck !

[jft310]

Dear Dr Hession lets takeover Oil Search and show them how to prospect on PNG!!!interoil adds value with the drill bit and Oil Search buys what others find. Latest example their buy into E/A .
Nothing but the facts ..
What way is cheaper and thus more shareholder friendly over time . ?

[Palm]

Slap my mouth. My mistake on P'nyang. Exxon as Operator announced some time ago that in a sidetrack to P'nyang South 1 that they hit the main part of the reservoir and estimates have been that P'nyang may hold up to 3Ts. If so, that's not enough for a new train and in January a MOU was signed with the PNG government to use some of the gas from P'nyang to generate local power as well as part of Port Moresby. With Hides Deep having been expected to provide other gas for an expansion train it'll be interesting to see where they go next if P'nyang does not prove up enough on its own for expansion. They have other scattered prospects, but Hides Deep was one they had really hoped would prove out.

Our appraisal and exploration drilling success will be watched even more closely now. Hopefully our Ant Deep doesn't suffer the same fate as Hides Deep; OSH just cornered the market on water.

[ArtM72]

El tigre se come el pescado.

[sageo]

El tigre se come el pescado.

Art - Is that present tense or future tense ? Ha,ha. The tiger"eats" the fish or "will eat" the fish. Either way we are looking better.