OSH in Pump Mode

[Tree]

1 water bearing, 1 a 9m gas column but hey it's 'highly significant'.  Meanwhile, SMs and Pols are jockeying for a chunk of 30+ year  E/A gas supply for a 40%-50% return on their money.  Maybe we can contract OSH rigs in PRL15....

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Oil Search hits gas in Papua New Guinea

Russell Searancke

 24 July 2013 02:13 GMT

The second offshore exploration well drilled by Oil Search in Papua New Guinea has hit a gas column in a secondary reservoir target, and the company has as a result decided to drill a third well.

Oil Search said preliminary interpretation of logging data acquired over the lower zone of the Hagana-1 well, in the secondary Pliocene objective, indicated a nine-metre gas column, with work under way to evaluate the volumetrics of the discovery.

The primary Pleistocene target at Hagana-1 was water bearing.

Oil Search added that as a result of the encouraging results at Hagana-1 and its previous Flinders-1 discovery, both in Block PPL 244, the company would drill a third well called Kidukidu in Block PPL 385 following the completion of Hagana-1 using the rig Stena Clyde.

Reserves volumes at Hagana and Flinders are likely to be "relatively modest" but the results from both wells were "highly significant, as the wells have not only proven the existence of the turbidite sand play at two different stratigraphic levels but also the potential for gas charge and retention, opening up a new play fairway in this area of the Gulf basin", said the operator.

[Palm]

Under 10 meters of "pay zone" and a moderate estimate of potential would have sent IOC down 20% and tripled the Yazoo volume. One thing for sure; Total knows the difference as does XOM.

[Tree]

XOM has known for a sooooo looooong time that OSH fields within the PNG LNG Project Agreement could not economically feed PNG LNG expansion. P'nyang is not in the PNG LG PA and it's too expensive to develop and Hides wells cost over $100,000,000 apiece and there is no big sweet reef there to entice further Hides drilling today. Obvious answer has always been for XOM to feed with E/A gas, that is why that 'Tee' is offchore Gulf Province. XOM needs gas now, TOT needs gas in the future and OSH has failed so-far to satisfy either SM.  IOC can please them both immediately. If OSH was the only game, the SMs would wait.

http://www.oilsearch.com/Media/docs/1210...892b-0.pdf

[Palm]

Lets use the proper term "spur"; it also goes better with "cowboy". Hohoho