CSIRO, Universities, IOC Modelled PNG Region = Reef Trends

[Tree]

CSIRO's Tony Allan with PNG field team during recent geological research in the Purari River region


A panoramic view from the Moose-1 well towards the Purari River and Papuan foothills

Dave Holland is introduced in this 1Q 2011 CC at about the 1/3 mark.  He discusses the hydrocarbon modeling work commissioned by IOC done by experts from CSIRO and top university researchers.  They had used samplings from all wells in PNG onshore, offshore and with latest seismic and surface testing technlogies.  Their work revealed the highly promising reefal trend in the region and specifically through IOC leases.  This model has been scrutinized and accepted  as IOC has hit subsequent world class gas wells where they preddicted they would.  And it is where others had failed.  The proof is the influx of Majors Independents and SM'smoving into IOC's neighborhood.  This regional modelling work by IOC is the reason why IOC, IMO, will survive as an operating entity.  IOC believes PRL 15 is far from the end of exploration success.  

Their is a natural tension between a buy-out SM and IOC which ensure's IOC's survival.    IOC would demand compensation for what they 'know' is underground and no SM would likely agree to that in a buy-out scenario.  It appears the large holders that control IOC's destiny also believe IOC's model and are willing to hold the next 10 yrs. or so to see IOC find and monetize all that gas, condensates and likely oil some day.  Listen to Dave Holland describe the resource model they've developed and how he views their future success based upon the findings.

http://www.interoil.com/conference-call-...ence-call/

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CSIRO helps find oil in PNG ’Moose’

25.09.2003
A team of ten CSIRO researchers has helped Canadian oil company InterOil find exciting new oil shows in Papua New Guinea. 25.09.2003

This early success follows from a vigorous exploration program, conducted in an ongoing research partnership with CSIRO’s Petroleum Division. The CSIRO studies have been critical to this result, consolidating evidence for a new petroleum system in InterOil’s exploration Licenses. 

In late July InterOil announced finding fourteen oil shows through 135 meters (443 feet) of cored Tertiary limestones in the Moose-1 ST1 well, located 350km northwest of Port Moresby, in the Gulf Province of Papua New Guinea. The company plans to undertake additional testing, production and development drilling to determine the structure’s resource potential. Commercial confirmation would result in the first significant hydrocarbon discovery in the area in 44 years. 

Recognising the geological and geochemical complexity of the PNG province, the company sought to capitalise on CSIRO’s specialist technologies and expertise in the Papuan Basin. InterOil’s General Manager of Exploration and Production, Andy Carroll says: "CSIRO has provided us with key technical expertise across several functions." 

For example, the application of high resolution strontium isotopic age dating to limestones and other marine fossils allows CSIRO and InterOil geoscientists to build an accurate ’stratigraphic yardstick’. This will permit accurate prediction of subsurface structure ’ahead of the bit’ during the forthcoming multi-well drilling program. 

The accurate limestone ages are also used to construct basin models that assist with the prediction of subsurface reservoir distribution through InterOil’s exploration area. In addition, CSIRO is independently evaluating reservoir data like porosity and permeability, and geochemically typing hydrocarbons. InterOil is using these data in estimating potential predrill reservoir sizes and hydrocarbon volumetrics. 

CSIRO researchers have been studying InterOil’s prospects, covering the area northwest from Port Moresby into the Papuan foothills and highlands north of the Gulf of Papua, examining reservoir quality and sedimentology, organic geochemistry and petrology, geochronology and regional basin history. The work has included detailed laboratory analysis and field studies. 

CSIRO Project Coordinator, Tony Allan says the project is of great scientific interest. 

"This work builds on 10 years of CSIRO research in Papua New Guinea," he says. "It is providing unique insights into petroleum system evolution throughout the Papuan Basin, with a direct impact on models driving current exploration in this region. 

"Our InterOil work is also relevant to petroleum systems analysis across the northwest Australian margin, and to the continuing development of CSIRO exploration and appraisal technologies." 

The new chief of the Division, Professor Beverley Ronalds, is encouraging the future development of the CSIRO-InterOil science alliance. "CSIRO’s role in exploration-related research is not only about developing new technologies but ensuring they are applied and are making a difference in the industry. I am delighted that our research partnership with InterOil is delivering on both" Professor Ronalds

[Tree]

Antelope and Triceratops invalidates old palaeogeographic models

  The discovery of the Antelope shallow marine carbonate platform and reef complex onshore in the Eastern Papuan Basin does not fit existing basin models that were developed based on the historical work from the 1950’s to the 1990’s.

  The fundamental question as to the prospectivity of the Eastern Papuan Basin: are these singularities, or do they signify more significant shallow marine carbonate development in this region.

  The Triceratops and Antelope areas were believed to lie in basinal deeper water setting on the margins of a major facies transition from carbonate to siliciclastic.

  Based on this palaeogeography the shallow marine carbonate depositional systems identified at Antelope and Triceratops should not be present.

InterOil Exploration History

  

  

2012 marks 13 years of InterOil’s exploration in Papua New Guinea.

 InterOil began exploration in Papua New Guinea with an initial license award in April of 1999.

InterOil took a somewhat contrarian view and saw evidence with previous oil and gas discoveries and abundant gas and oil seeps indicating an active Petroleum System of an under explored Greenfields province.

 In the late 1990’s most of the Eastern Papuan Basin lay fallow and unlicensed.

 Despite early success in carbonates in the late 1950’s and 1960’s exploration in the eastern basin had

stagnated.

 Best shown with only 2 non-InterOil onshore wells drilled in the area since 1970 (Puri South 1, 1988 and Ipigo 1, 1970).

 By comparison in that 40 year period nearly 160 wells were drilled elsewhere in the Papuan Basin. InterOil was awarded a large exploration area of nearly 8 million acres of frontier basin – with such a large frontier

license a systematic approach was required to focus our efforts.

In 2009 InterOil extended its licenses and relinquished 50% reducing the total area to a little approximately 16,000 km2 (~3.9 million acres).

[Palm]

Antelope and Triceratops invalidates old palaeogeographic models

  The discovery of the Antelope shallow marine carbonate platform and reef complex onshore in the Eastern Papuan Basin does not fit existing basin models that were developed based on the historical work from the 1950’s to the 1990’s.

  The fundamental question as to the prospectivity of the Eastern Papuan Basin: are these singularities, or do they signify more significant shallow marine carbonate development in this region.

  The Triceratops and Antelope areas were believed to lie in basinal deeper water setting on the margins of a major facies transition from carbonate to siliciclastic.

  Based on this palaeogeography the shallow marine carbonate depositional systems identified at Antelope and Triceratops should not be present.

InterOil Exploration History

  

  

2012 marks 13 years of InterOil’s exploration in Papua New Guinea.

 InterOil began exploration in Papua New Guinea with an initial license award in April of 1999.

InterOil took a somewhat contrarian view and saw evidence with previous oil and gas discoveries and abundant gas and oil seeps indicating an active Petroleum System of an under explored Greenfields province.

 In the late 1990’s most of the Eastern Papuan Basin lay fallow and unlicensed.

 Despite early success in carbonates in the late 1950’s and 1960’s exploration in the eastern basin had

stagnated.

 Best shown with only 2 non-InterOil onshore wells drilled in the area since 1970 (Puri South 1, 1988 and Ipigo 1, 1970).

 By comparison in that 40 year period nearly 160 wells were drilled elsewhere in the Papuan Basin. InterOil was awarded a large exploration area of nearly 8 million acres of frontier basin – with such a large frontier

license a systematic approach was required to focus our efforts.

In 2009 InterOil extended its licenses and relinquished 50% reducing the total area to a little approximately 16,000 km2 (~3.9 million acres).

I think this is crucial to understand. The early short argument was based a lot on the older model. When IOC starting saying what they were seeing the hedges were told and believed that it was impossible for what IOC was saying to be true. They were labeled "liars". But when people like Henry, Dave Holland, Wayne Andrews, and others saw the seismics their eyes popped out of their heads. Henry said they were some of the best he'd ever seen and he kept his eyes on what was going on in PNG. When IOC hit Ant-1 he wanted to be a part of it. Ant-2 was the capper; this stuff was real. He knew it and the Bigs knew it. It has been a matter of working through the economy crash and politics of PNG. Now things are in place and "the beauty contest" is down to the finalists.

[jft310]

Wayne Andrews specialized in seismics and he saw the same seismincs and asked to invest in IOC at RJ they refused and he went to work for IOC.

[admin]

Antelope and Triceratops invalidates old palaeogeographic models

  The discovery of the Antelope shallow marine carbonate platform and reef complex onshore in the Eastern Papuan Basin does not fit existing basin models that were developed based on the historical work from the 1950’s to the 1990’s.

  The fundamental question as to the prospectivity of the Eastern Papuan Basin: are these singularities, or do they signify more significant shallow marine carbonate development in this region.

  The Triceratops and Antelope areas were believed to lie in basinal deeper water setting on the margins of a major facies transition from carbonate to siliciclastic.

  Based on this palaeogeography the shallow marine carbonate depositional systems identified at Antelope and Triceratops should not be present.

InterOil Exploration History

  

  

2012 marks 13 years of InterOil’s exploration in Papua New Guinea.

 InterOil began exploration in Papua New Guinea with an initial license award in April of 1999.

InterOil took a somewhat contrarian view and saw evidence with previous oil and gas discoveries and abundant gas and oil seeps indicating an active Petroleum System of an under explored Greenfields province.

 In the late 1990’s most of the Eastern Papuan Basin lay fallow and unlicensed.

 Despite early success in carbonates in the late 1950’s and 1960’s exploration in the eastern basin had

stagnated.

 Best shown with only 2 non-InterOil onshore wells drilled in the area since 1970 (Puri South 1, 1988 and Ipigo 1, 1970).

 By comparison in that 40 year period nearly 160 wells were drilled elsewhere in the Papuan Basin. InterOil was awarded a large exploration area of nearly 8 million acres of frontier basin – with such a large frontier

license a systematic approach was required to focus our efforts.

In 2009 InterOil extended its licenses and relinquished 50% reducing the total area to a little approximately 16,000 km2 (~3.9 million acres).

I think this is crucial to understand. The early short argument was based a lot on the older model. When IOC starting saying what they were seeing the hedges were told and believed that it was impossible for what IOC was saying to be true. They were labeled "liars". But when people like Henry, Dave Holland, Wayne Andrews, and others saw the seismics their eyes popped out of their heads. Henry said they were some of the best he'd ever seen and he kept his eyes on what was going on in PNG. When IOC hit Ant-1 he wanted to be a part of it. Ant-2 was the capper; this stuff was real. He knew it and the Bigs knew it. It has been a matter of working through the economy crash and politics of PNG. Now things are in place and "the beauty contest" is down to the finalists.

Yes, for me the absolutely crucial moment was when Ross Smith bascially had to admit that IOC's geological model was right after all. They did this in a report that was issued when Antelope1 just hit the top of the reef, and both reef and dolomite were confirmed. I've said quite a few times that from that moment on, the smart shorts moved on, and we were left with, well, you can fill in the rest.

The reverse side of the coin of this is that pre-Antelope 1, the shorts did have something of a credible case (I don't know how credible, I'm not a geologist, but I believe it depended on who you asked at the time) and there were conflicting interpretations and models, with quite different consequences and outcomes. But the smarter critics like Andy Left and Ross Smith moved on after Antelope1.

After Antelope1 though, it was always highly probable that E/A would be a world-class resource with very favourable production economics and I never understood why so much shorting was hanging around, never mind all the fluff arguments they were throwing up.

[jft310]

If someone can find the 2003 Csiro report that's the one that talked about all the NG in the area and it all came from oil. More talk about the sandstones there if I remember right.

[Tree]

"CSIRO technology helped oil and gas company InterOil discover significant amounts of natural gas in Papua New Guinea, potentially worth 687,000 barrels of oil equivalent per day. CSIRO worked closely with InterOil to develop a basin ‘sequence model’ for Tertiary rocks in the region. The model is based on the highly specialised method of strontium isotope dating of limestones. “CSIRO’s model was a critical component in InterOil’s successful exploration strategy” InterOil’s CEO and Chairman, Phil Mulacek."

http://www.csiro.au/en/Organisation-Stru...ation.aspx

Birth of the 'Rolodex of Reefs'