Oil Search Drilling Report

[Resourcearb]

Oil Search only encounters "minor gas shows" over a total of 71 gross meters in its third and final well of its offshore drilling campaign.  It's increasingly evident that Exxon, Shell and now Total (and possibly even Oil Search) must work with or acquire InterOil to economically attain and develop the resources they need for LNG projects in PNG...

DRILLING REPORT – 29 August 2013

WELL NAME: Kidukidu 1, PNG

Oil Search reports that as at 06:00 hours PNG time on 29 August, the

Kidukidu 1 well was at a total depth of 2,697 metres and preparations were

underway to pull out of the hole and run wireline logs.

During the week, 9-5/8” casing was set and 477 metres of 8-1/2” hole was

drilled. Minor gas shows were encountered within two sand intervals, of 51

metres and 20 metres gross thickness respectively, which will be evaluated

further with the logging programme.

The Kidukidu prospect, which lies 268 kilometres west-northwest of Port

Moresby, is in a water depth of 98 metres. The primary objective is a

submarine, basin-slope fan sandstone of Pleistocene age.

Kidukidu 1 is the third and final well to be drilled in the current Oil Search

offshore Gulf of Papua campaign.

[jft310]

OSH needs to contract Phil M and Dave Holand on a loan basis to find more assets. IOC is in a very strong position.

[Tusker]

OSH needs to contract Phil M and Dave Holand on a loan basis to find more assets. IOC is in a very strong position.

Two in the hand... one in the bush?

With E/A able to supply two tains, what will become available from Triceritops?  A 120 sq mile formation, is is great to know that InterOil and Oil Search are keen to get those seismic lines out.

Not to late for XOM to... "buy the future"

Cheers

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[CAC]

OSH needs to contract Phil M and Dave Holand on a loan basis to find more assets. IOC is in a very strong position.

[/quote]

Two in the hand... one in the bush?

With E/A able to supply two tains, what will become available from Triceritops?  A 120 sq mile formation, is is great to know that InterOil and Oil Search are keen to get those seismic lines out.

Not to late for XOM to... "buy the future"

Cheers

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**********

Agreed.  We know it takes a certain quantity of gas to make a new plant economically viable.  If IOC reduces the amount it has via a lucrative deal for additional trains with XOM, it may also be affecting it's later options.  My guess is that IOC wants a global plan in place (either with XOM or another partner) right now while their options (and bargaining power) remains elevated.  

[Palm]

OSH has enough gas in those 3 wells to provide another IOC fake flare; that's about it. Likely they will be done drilling in the Gulf and the costs of this last well are all theirs. Have to wonder whether IOC negotiates from a standpoint of saying they will provide 4.6Ts only and the rest goes to Gulf LNG with someone else. Or if XOM will commit to being partner in Gulf LNG project, IOC will do the 4.6Ts now for PNG LNG, the next amounts go to Gulf LNG up to X Ts, then more to PNG LNG, etc. Provides incentive for XOM to drill as fast as they can to make both projects work.

[Palm]

Maybe the name of this well was a clue to Total to let OSH go it alone:
Kid-u Kid-u

You can kid us on the first well, and kid us on the second, but...........................

[sydbod]

Palm, please..... some of your comments are making me embarrassed .
"Maybe the name of this well was a clue to Total to let OSH go it alone:
Kid-u Kid-u
You can kid us on the first well, and kid us on the second, but..........................."

Why was Total NOT involved in the Kidukidu well?
The slightest of research will tell you why.
Let me giver you a hint ..... PPLxxx, is that cryptic enough?

Before others think about making foolish statements they should consider for example (let me make it cryptic again)
What is a "submarine basin-floor fan" ?
What is its source material to produce gas?
Where does this material come from for these 3 submarine basin-floor fan structures?
From what area do they think the source material for these 3 structures came from, and WHY do they think that they may also be wrong and that the source material actually came from the exact opposite direction?
Why do they think that these 3 structures are unusual and probably a very rare occurrence due to their physical location on the map?
And finally from the above and for what other reasons make these structures worth the risk of drilling in the first place, should the above make them improbable targets in the first place?

NO!!!! it has nothing to do with IOC or even the provision of gas for the PNGLNG plant.

All the above is available partially from OSH sources but most importantly from CSIRO sources, and YES it is easily found on the net.

[jft310]

Palm, please..... some of your comments are making me embarrassed . "Maybe the name of this well was a clue to Total to let OSH go it alone: Kid-u Kid-u You can kid us on the first well, and kid us on the second, but..........................." Why was Total NOT involved in the Kidukidu well? The slightest of research will tell you why. Let me giver you a hint ..... PPLxxx, is that cryptic enough? Before others think about making foolish statements they should consider for example (let me make it cryptic again) What is a "submarine basin-floor fan" ? What is its source material to produce gas? Where does this material come from for these 3 submarine basin-floor fan structures? From what area do they think the source material for these 3 structures came from, and WHY do they think that they may also be wrong and that the source material actually came from the exact opposite direction? Why do they think that these 3 structures are unusual and probably a very rare occurrence due to their physical location on the map? And finally from the above and for what other reasons make these structures worth the risk of drilling in the first place, should the above make them improbable targets in the first place? NO!!!! it has nothing to do with IOC or even the provision of gas for the PNGLNG plant. All the above is available partially from OSH sources but most importantly from CSIRO sources, and YES it is easily found on the net.

so far OSH isn't doing well with the new drilling is a more than fair statement, Is what IOC does before drilling luck?? They seemed to have figured out their geology is a fair statement and thus they have the goods for an Exxon third train and Oil Search is still looking

[sydbod]

so far OSH isn't doing well with the new drilling is a more than fair statement, Is what IOC does before drilling luck?? They seemed to have figured out their geology is a fair statement and thus they have the goods for an Exxon third train and Oil Search is still looking

I have no issue with what you state there. I totally agree with you, but likewise what you have state has also no relevance to what I have posted above.

[trans]

I note that total depth for the kidukidu ! is 2800 mt. depth and this report was at 2697 mt depth. That leaves only 103 mt. more to find something. Doesn't rule it out, but seems to me to indicate this well is likely unsuccessful.