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

[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.