InterOil updates Papua New Guinea LNG project

Offshore staff

SINGAPORE and PORT MORESBY, Papua New Guinea InterOil Corp. has provided an update on its operations and financial results for 4Q and FY 2016, including its operations offshore Papua New Guinea.

InterOil CEO Dr. Michael Hession said momentum was building for the Total E&P PNG Ltd.-operated Papua LNG project. Recent results showed that the Antelope-6 appraisal well intersected 42 m (138 ft) of dolomite with connectivity to the rest of the Antelope field.

In addition the excellent reservoir qualities, identified by a short flow test last year at Antelope-5, were successfully confirmed by a longer flow test in 1Q 2016.

“The data from the last three appraisal wells have surprised on the upside and extended flow tests have confirmed connectivity, deliverability, and excellent reservoir quality across Antelope. This will mean a less complex and lower cost development,” Hession said.

“While the analysis of the Antelope-6 well and the Antelope-5 flow test is continuing, results to date have been encouraging and we remain confident of a two-train LNG development. On completion of the appraisal program, data will be submitted to two independent auditors for certification, a process which could take four to six months,” he continued.

The Antelope-4 side track, located near Antelope-2, intersected the top of the reservoir at 1,875 m (6,152 ft) true vertical depth subsea (TVDSS) in a position that was 36 m (118 ft) higher than the original Antelope-4 penetration.

In addition, the Antelope-4 sidetrack-1 confirmed the southern extension of the Elk-Antelope field’s high-quality, gas-bearing dolomite. Wireline logging indicates 182 vertical m (597 ft) of dolomite and a vertical gross gas column of about 339 m (1,112 ft).

Antelope-5 appraised the western flank of Elk-Antelope, located south-southwest of Antelope-3. The top of the carbonate reservoir was intersected at 1,534 m (5,033 ft) TVDSS, about 230 m (755 ft) higher than InterOil’s reference case. The result provides evidence that the good quality, reefal reservoir extends farther west than originally thought, InterOil said.

During June 2015, a well test at Antelope-5 flowed a total volume of 152.9 MMcf of gas over a 72-hour period with listening gauges in Antelope-1. An extended-well test of Antelope-5 in early 2016 flowed a total volume of 760 MMcf over 14 days and then was shut-in for 16 days to record the subsequent pressure build-up.

Antelope-6, located east-southeast of Antelope-3, provided structural control and reservoir definition on the field’s eastern flank. The well encountered top reservoir within expectations at approximately 2,076 m (6,811 ft) TVDSS.

Following the full analysis of the recent flow test and drilling results, the PRL 15 JV is expected to decide in 2Q 2016 if a further appraisal well, Antelope-7, is required. The encouraging appraisal data gathered to date continues to support InterOil’s confidence in a two-train LNG development.

Triceratops-3 was drilled to appraise the Triceratops discovery to the northwest of Triceratops-1 and Triceratops-2 in PRL 39. The field is about 45 km west-north-west of Elk-Antelope. The well reached a total depth of 1,567 m (5,141 ft) TVDSS and successfully flowed gas at a tubing constrained rate of 17.1 MMcf/d and condensate at an average of 200.3 b/d. Stabilized flow rates were obtained over several five-hour intervals, measured through a 72/64-in. choke.

In addition, InterOil said that GLJ Petroleum Consultants Ltd. prepared an independent evaluation of contingent resources for the Elk-Antelope field as at Dec. 31, 2015 which estimated the gross unrisked contingent resources for the Elk-Antelope field of 7.7 tcf 1C, 10.2 tcf 2C, and 12.4 tcf 3C.


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