Horizon gears up for drilling

OIL exploration company Horizon Oil (HO), which is exploring oil in Papua New Guinea, says preparation for the appraisal and development for well drilling campaign remains on schedule to begin in August this year.
Chief financial officer and company secretary Michael Sheridan said last week that at this stage the firm programme comprises Stanley-2 in Petroleum Retention Licence (PRL) 4 and Elevala-2 in PRL 5, which will be drilled back-to-back.
Sheridan said specific achievements include contract negotiations for a drilling rig which is nearing finalisation and the rig owner has begun assembling equipment for mobilisation to the Stanley wellsite.
A 45,000 sqm area adjacent to the Kiunga airstrip has been leased for establishment of a drilling supply base.
Civil engineering work on the base is underway and casing sufficient for two wells has been purchased and is in the country.
He said specialist Chinook helicopter had been contracted for arrival in July, while all other drilling services hadbeen tendered and contract negotiations are near finalisation.
Site work on the Stanley-2 location is due to begin after completion of work on the supply base in Kiunga with 50% of HO interest.
“It is a key site because the Stanley-4 will also be drilled from this location and the gas processing plant will eventually be situated there,” Sheridan said.
“Work on field design is continuing and tenders have been received
from qualified contractors for the front end engineering and design (FEED) work.
“The application for a Production Development Licence for Stanley field is progressing through the various PNG government departments.
“Horizon Oil has submitted necessary documents and reports to support the application,” Sheridan said.
Preparations are underway for drilling of the well, in anticipation of moving the drilling rig on location this November.