06-27-2012, 09:16 PM
Guess foreign investment isn't too afraid of PNG yet.
First comes the CSP, then comes the LNG facility (that's the hard part). Sound familiar?? Will they recycle, sell or produce LNG??? With the weight of a major partner, HOR looks to be on their way. Ya think ennerOle will hit the ground running when they finalize their transaction??
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Second western PNG condensate project likely
Wednesday, 27 June 2012
THE development of a second condensate recovery project involving Horizon Oil and Talisman Energy in Papua New Guinea’s Western Province appears likely after Kina Petroleum unveiled favourable resource estimates for the recently drilled Ketu field.
Ketu-2 on clean up flow 2 hours into test - image courtesy of Horizon Oil.
The Horizon-operated Ketu-2 appraisal well in petroleum retention licence 21 struck a gas and condensate zone in April.
Following on from testing, a technical consultant has provided preliminary resource figures.
KP said the Ketu Pmean (mean pressure) contingent estimate was 21.8 million barrels of condensate and 375 billion cubic feet of gas.
In combination with the results of the Elevala-2 appraisal well and its associated sidetrack drilled in the same licence earlier this year, KP said the recoverable condensate resource for PRL 21 was in excess of 50MMbbl condensate resulting in a “very likely development candidate”.
Development studies for a condensate recovery project are expected to kick off in the next six months.
Providing further opportunity is the Tingu 1 well in PRL21 which is expected to be spudded in the first half of 2013.
Horizon and Talisman’s first commercial development in Western Province is the $US300 million Stanley field condensate recovery project in PRL 4, which is on track for first production in late 2013.
In late April, Horizon chief executive officer Brent Emmett told PNGIndustryNews.net that a design for the various components of the project could be used for a possible condensate stripping plant in PRL 21, which would save considerable time.
Importantly, at that time he expected the condensate yield to be about 60 barrels per million cubic feet of gas in PRL 21 compared to 30bbl/MMcf in PRL 4.
Despite better condensate ratios found in PRL 21, the Stanley condensate project was prioritised mainly due to logistical considerations.
The Stanley condensate project aims to produce 140MMcf of wet gas per day to result in the initial recovery of about 4000bbl of condensate per day using a two-train refrigeration plant in the field.
Horizon previously flagged a possible floating LNG development to commercialise the gas resources in Western province.
Talisman, Horizon and Mitsubishi own stakes in PRL 4 while PRL 21 is owned by Horizon (45%), Talisman (40%), KP (15%) and Mitsubishi subsidiary Diamond Gas Niugini (7.5%).
Interestingly, KP was issued with a price query from the Australian Securities Exchange on Monday after its shares rallied on lacking news late last week.
KP explained it was aware of some investment bank research reports which were recently published but said it was unaware of any information that resulted in its shares reaching A46c.
By early afternoon KP shares were down 4c or 8.9% to 41c.
First comes the CSP, then comes the LNG facility (that's the hard part). Sound familiar?? Will they recycle, sell or produce LNG??? With the weight of a major partner, HOR looks to be on their way. Ya think ennerOle will hit the ground running when they finalize their transaction??
**********
Second western PNG condensate project likely
Wednesday, 27 June 2012
THE development of a second condensate recovery project involving Horizon Oil and Talisman Energy in Papua New Guinea’s Western Province appears likely after Kina Petroleum unveiled favourable resource estimates for the recently drilled Ketu field.
Ketu-2 on clean up flow 2 hours into test - image courtesy of Horizon Oil.
The Horizon-operated Ketu-2 appraisal well in petroleum retention licence 21 struck a gas and condensate zone in April.
Following on from testing, a technical consultant has provided preliminary resource figures.
KP said the Ketu Pmean (mean pressure) contingent estimate was 21.8 million barrels of condensate and 375 billion cubic feet of gas.
In combination with the results of the Elevala-2 appraisal well and its associated sidetrack drilled in the same licence earlier this year, KP said the recoverable condensate resource for PRL 21 was in excess of 50MMbbl condensate resulting in a “very likely development candidate”.
Development studies for a condensate recovery project are expected to kick off in the next six months.
Providing further opportunity is the Tingu 1 well in PRL21 which is expected to be spudded in the first half of 2013.
Horizon and Talisman’s first commercial development in Western Province is the $US300 million Stanley field condensate recovery project in PRL 4, which is on track for first production in late 2013.
In late April, Horizon chief executive officer Brent Emmett told PNGIndustryNews.net that a design for the various components of the project could be used for a possible condensate stripping plant in PRL 21, which would save considerable time.
Importantly, at that time he expected the condensate yield to be about 60 barrels per million cubic feet of gas in PRL 21 compared to 30bbl/MMcf in PRL 4.
Despite better condensate ratios found in PRL 21, the Stanley condensate project was prioritised mainly due to logistical considerations.
The Stanley condensate project aims to produce 140MMcf of wet gas per day to result in the initial recovery of about 4000bbl of condensate per day using a two-train refrigeration plant in the field.
Horizon previously flagged a possible floating LNG development to commercialise the gas resources in Western province.
Talisman, Horizon and Mitsubishi own stakes in PRL 4 while PRL 21 is owned by Horizon (45%), Talisman (40%), KP (15%) and Mitsubishi subsidiary Diamond Gas Niugini (7.5%).
Interestingly, KP was issued with a price query from the Australian Securities Exchange on Monday after its shares rallied on lacking news late last week.
KP explained it was aware of some investment bank research reports which were recently published but said it was unaware of any information that resulted in its shares reaching A46c.
By early afternoon KP shares were down 4c or 8.9% to 41c.