Cooperation vital in gas industry

By BOSORINA ROBBY
COOPERATION in the oil and gas industry is very important especially if players are based in one area, LNG energy business and operations manager PNG Jenni Lean said yesterday.
Lean was speaking at the petroleum seminar hosted by the PNG Chamber of Mines and Petroleum in Port Moresby.
She said the company she represented, LNG Energy Ltd, secured licence PPL 319, which was adjacent to Oil Search oil line and Ex­xonMobil’s planned gas pipeline infrastructure, a reason why co-operation was encouraged.
She said because of a shortage of transportation in that region, such as cars, trucks, boats, planes or helicopters, everyone had to chip in where they could.
LNG Energy, which was listed on the Toronto Stock Exchange, also operated in Bulgaria and Poland, as well as PNG.
Lean said LNG Energy became interested in PNG due to the excellent fiscal terms and supportive gas demand and pricing in all areas.
They had five licences, two in Sepik and three in the Gulf, located in the foreland fold and thrust belt with 25 trillion cubic feet of proven gas discovered and adjacent to InterOil’s gas discoveries.
Lean said the company was well-financed, with over US$20 million in cash and no debts.
“However, because of the various issues, we are looking for a partner to help us drill.
“But we will manage the farm out process,” she said.
The licence sits on a highly prospective onshore acreage with large prospects and associated hydrocarbon resources, where they were shooting 147km 2D seismic in the fourth quarter this year to identify drillable prospects during the second quarter of next year.
Peers in the area include Oil Search, Exxon, Santos, InterOil, Sasol, Talisman, Horizon, Eaglewood Energy and New Guinea Energy.
LNGE was currently completing a seismic project.
Lean said the reservoir source and seal had been proven to show that there was gas presence in Barikewa and Iehi of this “conventional” reservoir.
She said well intersections had shown good oil and gas source rock within the oil window, which was at present at a depth estimated at around 3,000m, with main zone oil generation occurring around 3,500m.
Lean said the company planned to drill in October and November next year.