New gas discovery could be PNG's biggest: InterOil

INTEROIL says it may have discovered what seems to be the largest vertical section of continuous reservoir of gas and gas liquids in PNG at the company’s Antelope-1 well in Gulf Province.
New gas discovery could be PNG's biggest: InterOil New gas discovery could be PNG's biggest: InterOil New gas discovery could be PNG's biggest: InterOil New gas discovery could be PNG's biggest: InterOil New gas discovery could be PNG's biggest: InterOil

The company said drilling and logs to date have shown the existence of a gas and gas liquids column over the entire logged vertical interval of 611m from 1746-2358m, and indicated the net reservoir is more than 10 times the thickness intersected in the earlier Elk-4 well.

"The results are far better than expected confirming the reef with in excess of 1800 feet [550m] of net reservoir, which has demonstrated exceptional porosity and permeability," chief executive officer Phil Mulacek said.

"The well logs reflected the largest vertical section of net reservoir I have seen in my career."

InterOil said it would continue coring and drilling the lower reservoir below 2370m to evaluate the heavy condensate seen at Elk-4 before carrying out drill stem tests on the lower and upper sections of the reservoir, and final wireline logs.

Antelope-1 is located on the Eastern Papuan Basin PPL 238 of PNG'S Gulf Province and was drilled to confirm the high gas and gas condensate flow results in Elk-4.

The well flowed gas just before the end of 2008 at rates of up to 15 million cubic feet per day while circulating out gas kicks during drilling operations in the upper section of the structure.

InterOil believes the well could prove up enough gas to underpin two trains for the $US5-7 billion ($A7-9.8 billion) Liquid Niugini Gas joint venture in the event of a success.

One-third owned by InterOil, Merrill Lynch and Clarion Finanz (through subsidiary Pacific LNG), the JV would ideally like a two-train liquefaction plant capable of producing up to 9 million tonnes of gas per annum and is looking at production in late 2013, early 2014.

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