(01-30-2014, 05:53 AM)trans Wrote:I have wondered why PM never drilled the deep formations, and figured the higher probability lied in the shallower reefal formations, I attribute that to Holland's research and knowledge in this area. Why take a chance in going deep and entering a different geologic environment. Peteng could give us a good answer on that...imo
We are moving into a new era for IOC. We are no longer planning to build an LNG project on our own. We have a Major Partner who will do that. The job of IOC will be exploration and development. So the accelerated phase of exploration drilling that we were promised some years ago has now begun. IOC has two rigs and apparently has arranged for two or more contract rigs.
We (IOC) have been a little short on Drilling expertise in the management level since Wayne Hamal left the company. Of course we had Phil who was a Petroleum Engineer but he is now gone also. I think Dave Holland is the best Exploration man in PNG and I believe he is responsible for identifying most of the IOC prospects, so he is certainly a valuable employee and I hope we can retain him and let him concentrate on Exploration.
As far as the appointment of David Kirk as V. P. Upstream Business Unit is concerned, this is a great improvement as far as putting drilling expertise in at the Management level. With the accelerated drilling program we will be needing much more rig site supervision and engineering personnel. It is my understanding that these personnel are being hired and put in place so that proper drilling programs and rig/well site supervision will be available as needed. This is an absolute must when drilling into these reefs that may be over pressured and may have fractured and/or lost circulation zones to be drilled through. We needed someone with long term experience in the design of drilling programs, well design, and supervision of the overall drilling program. His job will be to make sure the wells are drilled safely and efficiently and that adequate qualified and experienced personnel are in place at all times. He will work closely with the Drilling Engineering team and will no doubt be involved in the design of the down hole and well head equipment needed for these high volume gas producers. Of course a lot of other items will also need to be handled such as contracts for rigs, helicopters, barges, well site contractors (Schlumberger, Weatherford, Halliburton etc.), ordering the necessary material for the wells including well heads, casing, tubing, drill pipe, mud, cement and acid among others.
I believe that properly designed drilling programs can reduce the time required to drill these wells by at least 50%. If they concentrate on good drilling practices: the right bits for the formation being drilled, the right pump pressure and nozzle size in the bit (hydraulic program), right weight on the bit, good mud program, proper down hole equipment such as the down hole deployment valves use previously, drill the wells to TD and run and cement the casing in place before testing, do all required testing inside of casing.
They are saying they expect these wells to take 3 months to drill which would be a great improvement over the time it has been taking with all of the open hole testing. I believe if they get a continuous drilling program going they will be able to drill these wells in less than 3 months.
Will they ever drill below the Mendi Limestone to look for the Pale/Subu sandstones? I have no way of knowing that. For example if the seismic data indicates a sandstone somewhere below the Mendi limestone and it appears to form a trap it might be tempting to drill to that target and see what is there. If the Pale/Subu happens to be below an existing gas zone like Elk/Antelope, that limestone zone will need to cased off before drilling to the prospective oil zone. That would keep the over pressured gas and lost circulation zones from causing problems as they drill ahead to the sandstones. If there are oil prospects that need to be drilled they should be drilled as early as possible so that electricity will be available from the CSP if it is necessary to pump the oil wells. Not to mention the improved net present value by getting the oil earlier and getting a stream of income before the LNG Plant gets built.
Yes, right now they are concentrating on the carbonates/reefs because we have proven gas in three fields so far i.e. Elk, Antelope and Triceratops. So the odds of finding a commercial hydrocarbon deposit are best by concentrating on what we know rather than what “might” be found in the Pale/Subu sandstone. Total, Exxon, Shell, Oil Search and IOC have LNG fever. There is a lot of money to be made on LNG if you find sufficient gas and you have a Major Partner that can raise the money necessary to build an LNG plant and get the gas to market. That seems to be where IOC is now and that is where they will be concentrating their efforts in the near future. Wahoo, Bob Cat, Raptor, Antelope Deep and the appraisal wells at Antelope and Triceratops will all be expecting to find gas.
Maybe some day they will drill below the limestone to the elusive oil zone or maybe they will just drill one or more of the shallow oil prospects. I think most of the prospects on the east side of PPL 238 and PPL 236 are shallow oil prospects. The limestone is either outcropping, or too shallow to be prospective for gas but if the Pale/Subu is present it would be much more shallow than it is at Elk/Antelope for example.
http://www.interoil.com/iocfiles/documen...0Final.pdf page 18
Have a good evening/day.