Oil Search believes there is considerable oil potential remaining in PNG and has an ongoing strategy to explore for oil, particularly within or in close proximity to its existing infrastructure.
In late 2010, the Mananda 5 well, located in PPL 219, approximately 18 kilometres north-west of the SE Mananda oil field, discovered hydrocarbons. A comprehensive testing programme took place in early 2011 and four zones in the Toro and Imburu flowed oil rates of between 500 - 1,200 bopd with a gas:oil ratio of between 600 - 1,200 scf/bbl. A longer flow test over the upper Toro A zone flowed oil at sustained rates of 1,000 - 1,200 bopd and at rates of up to 1,900 bopd on a larger choke size.
During 2011, work took place to determine the optimal development plan for the discovery. These studies indicated that further information to define the size and shape of the structure was required.
Consequently during the first half of 2012, a 90 kilometre 2D seismic programme was acquired over the 2010 Mananda 5 discovery in PPL 219 and a number of near-field exploration targets in PDL 2. Following the processing and interpretation of the data, a location, approximately 5 kilometres south-east of Mananda 5, was selected for the Mananda 6 well. Mananda 6, located updip of Mananda 5 and on the crest of the Mananda structure, will appraise the hydrocarbon-bearing sands found at Mananda 5. If successful, a sidetrack well is likely to be drilled to further constrain volumes, prior to a field development decision by the end of 2013. Well-site construction was nearing completion at the end of 2012 and drilling is scheduled to commence in the first half of 2013.
Mananda area. PNG Highlands, showing recent seismic acquisition and well locations.
Evaluation of the near-field exploration portfolio continued during 2012. The near-field exploration strategy has been very successful since its implementation in 2011. High-value oil has been discovered in three wells targeting the Agogo and Hedinia forelimbs, which are now all in production. Several additional prospects within the Kutubu and Moran fields are being matured, with timing of drilling subject to rig availability and other drilling priorities.