Closure of the Alligator structure is based on gravity and limited seismic data, but it potentially covers more than 1000sq.km.
Conveniently, the prospect within PPL 436 also sits close to the planned pipeline route to Horizon Oil's proposed pipeline to an LNG export facility at Daru Island.
The structure is mapped to be 300-400m up-dip of the Adiba-1 well, and there are a number of other smaller closures along trend from Alligator sufficiently interesting that Kina has made application for the extension of the trend to the east of PPL 436.
Kina's exploration team has completed an assessment of the prospect, recommending further gravity and seismic delineation of Alligator will form the basis of future field work, costs of which are being refined for Kina's multi-licence farm-out effort
Work to date, based on regional seismic control, has defined a subsurface architecture that has been controlled by faults active during the break up of Gondwanaland and reactivated by the Coral Sea opening.
Preliminary analysis indicates that the Fly Platform formed as an antithetic block to the southern Australian shelf during the Eocene era, and tectonic movements have offset Mesozoic reservoir sequences, establishing very large structural features capable of draining oil and gas generated in kitchens to the north and east.
These kitchens are known to be generating oil based on measured flows at the Panakawa oil seep that was previously drilled by New Guinea Energy just outside the block, but did not result in a commercial discovery despite up to 5bopd of flows from the seep.
Alligator is one of five prospects recognised along the Fly River Fault in Kina's PPLs 435 and 436, with a further two leads recognised in the APPL 611 licence area immediately to the east of PPL 436.
Kina said the suite of Fly Platform prospects have many similarities to the offshore early gas fields of the Northern Bonaparte Basin, and that could lead to identification of a new gas province.
The prospects have similarities with a proven play type in mid-Jurassic sandstone reservoirs on the Sahul Platform in the Bonaparte Basin, but the benign terrain make exploration efforts considerably cheaper than either offshore operations or drilling in the highlands region.
Kina says its lightweight seismic methods, which were tested in PPL 337 in 2015, mean exploration should be considerably cheaper than is typically seen in PNG or on offshore areas.
Over the next quarter, Kina will complete its review of options for a 200-300km seismic survey over Alligator, Aiambak and Aiambak South and gravity acquisition over APPL 611.
It is hoped that operations could commence in 2018 as part of a farm-out program.
Kina is also hopeful of concluding a farm-out of the Kalangar drilling in PPL 339 (Kina 30%, Oil Search 70%).
The pair is hoping to finalise a licence extension, but delays associated with the PNG elections means drilling may be pushed into early 2019.
The Kalangar prospect, as the potential first drilling location, is located in the western portion of PPL 339, some 80km south and along trend from Antelope on the flank of the Aure Trough.
Modern airborne gravity data supports the presence of a large prospect at Kalangar as the complicated structuring of the area has impacted seismic data quality and the rugged terrain makes the drilling more expensive.
While Oil Search is keen to drill, Kina has some concerns at the level of risk and its exposure, and wants to farm-out to a level commensurate with the size of the company.
In PPL 340, Kina has been able to secure a licence extension, and is shopping the multi-Tcf Lizard prospect, which is near Port Moresby and the existing LNG plant.
Kina also continues to highlight the Malisa, Mango and Ebony prospects in PPL 437, which are adjacent to its gas-condensate discoveries in PRL 21.
Kina says its multi-licence farm-out program should be of interest to players in the LNG space particularly LNG exporters on the North West Shelf looking for the next generation of fields that can compete in the prevailing market conditions.