ExxonMobil Corp.’s Muruk-1 well was drilled to 10,630 ft and encountered similar high-quality sandstone reservoirs as in Hides field 13 miles to the southeast. Hides field is the main source of gas for the new Papua New Guinea LNG project (OGJ Online, Apr. 28, 2014).
According to ExxonMobil, the well results were in line with predrill estimates, suggesting the Muruk-1’s target Toro formation could contain 2 tcf of gas (OGJ Online, Nov. 17, 2016). Santos Ltd. subsidiary Barracuda Ltd. recently signed a farm-in agreement with ExxonMobil and Oil Search Ltd. to take a 20% interest in the highlands permit PPL 402, which covers 126,000 acres. Oil Search spudded Muruk-1 on Nov. 2, 2016. Evaluation is ongoing of the Toro formation, but the Muruk-1’s early result “underpins the PNG LNG project,” ExxonMobil Pres. Steve Greenlee said.
ExxonMobil owns 42.5% interest in PPL 402, Oil Search is operator with 37.5% interest, and Santos owns 20%.