MELBOURNE, Feb. 7 -- Horizon Oil & Gas Ltd., Sydney, will complete its Stanley-2 appraisal well in retention lease PRL 4 in Papua New Guinea after positive results were obtained from wireline logs, fluid sampling, and pressure measurements of the prospective reservoir zones.
The company says the Toro formation reservoir was 35 m thick and contained 23 m of net gas pay with significantly better reservoir quality than the Stanley-1 discovery well.
The second pay zone in Kimu sandstone was 56 m thick and contained 43 m of net gas pay. Reservoir quality in this zone was also good.
Horizon says the gas-condensate ratio of 30 bbl/MMcf measured during testing of Stanley-1 is likely to persist through the prospect because pressure measurements indicated a connection of reservoir sands between the two wells.
Stanley-2 was drilled to a depth of 3,173 m. It has now been plugged back above the Toro reservoir and a sidetrack is being drilled about 8 m away from the well bore to allow cores to be cut in the upper Toro and through the entire Kimu Sand for reservoir and development planning purposes.
Horizon will wait until all the well information has been evaluated and integrated with plant design and condensate export plans before making a final field development decision.
The company believes at this stage the Toro contains about 300 bcf of gas and 9 million bbl of condensate. There is no published estimate for the Kimu reservoir.
In the meantime plans are going ahead to drill a second production well (Stanley-4) from the current surface location to a bottom-hole location about 1 km southeast of Stanley-2.
Horizon, operator, holds equal partnership in the lease with Talisman Energy Inc., Calgary.
Horizon to complete Stanley-2 appraisal well off Papua New Guinea