The ExxonMobil-led owners of the Papua New Guinea liquefied natural gas project are about to spud a much-anticipated gas exploration well into a deeper reservoir target.
The Hides F1 well, previously known as Hides Deep, is designed both as a production well and an exploration well that will penetrate a deeper target directly below the existing Hides field.
According to project co-owners Oil Search and Santos, the well has significant resource potential, and the Nabors-owned drilling rig 703 is mobilising to the location to drill the prospect.
Oil Search explained recently that the deep well is to be drilled from existing Wellpad F, and will penetrate the Koi-Iange reservoir, which is mapped as being 700 metres below the standard Toro-Digimu reservoirs.
“The Koi-lange reservoir is one that hasn’t been penetrated before at the Hides field,” said Julian Fowles, Oil Search’s executive general manager for exploration.
“We see significant potential there for expansion of the resource base that we have at Hides itself.”
The Hides field is a multi-trillion cubic foot gas field that is the principal feedstock for the two LNG trains.
Oil Search said Hides development drilling is nearly complete. The eighth production well has hit the Toro-Digimu reservoir and has been completed as a producer.
The produced water disposal well has also reached total depth and has been completed as a water injection well.
Oil Search said results were largely as expected, and all the wells showed good pressure communication.
The new structural, log and pressure data from all the wells will be used to help further define the Hides gas resources and distribution when the analysis is completed next year.
Another Nabors rig, Rig 702, is about to drill two more production wells on the Angore field, which is also a LNG feedstock source.
The PNG LNG project currently has proven and probable reserves of nearly 8 trillion cubic feet of gas spread across the Hides, Kutubu, Moran, Gobe, SE Hedinia, Angore and Juha fields.
In addition, there is nearly 800 billion cubic feet of contingent gas resources.
The contingent resource excludes the P’nyang, Juha North, Kimu, Uramu, Barikewa, Iehi and Cobra discoveries, accordingto Oil Search.
P’nyang is the discovery which the PNG LNG project partners hope will be the resource that underpins a third-train expansion. Juha North is understood to be another expansion candidate.
Concept selection work is well advanced on P’nyang and the partners plan to submit to the PNG authorities an application for a development licence in early 2015.
At Juha North, gas has been proven up, and Oil Search said it believes there is large potential upside, but appraisal work is necessary.
A batch of seismic data was acquired in the second quarter of 2014, and a second phase is planned to begin in the coming months.
