Horizon Oil spuds Elevala2 well in WP

WHILE politicians slug it out in Waigani over who should be in control of their whimsical chairs, the private sector investors are continuing their work unperturbed in some of the most remote parts of the country doing what they do best – proving up resources for development.
One of them is Horizon Oil which spudded the Elevala2 Well in Western province several weeks ago and had been sending its drill pits and casings deep into the earth in search of gas and condensate and to identify where the resources made contact with water.
On Monday, they hit gas which sent positive vibes through the industry because some of the big players like Oil Search, ExxonMobil and Talisman Energy were also looking for oil and gas in the same region.
Elevala2 was an appraisal well in the petroleum retention licence 21.
Gas was found in the primary Elevala sandstone target at the Elevala2 well,  which was spudded on Nov 14 .
They continued to drill after good gas shows were unearthed during coring, which indicated about 15m of a hydrocarbon zone.
The sand thickness and quality at the well, located about 50km east of the port of Kiunga, were similar to those at Elevala-1.
PNG government’s oil and gas advisor Michael McWalter told The National last night that Elevala2 well was an appraisal well designed to test the lateral extent of the gas accumulation previously discovered by the Elevala 1 well drilled by Santos and BP many years ago.
“It would have been a very great disappointment if the Elevala2 appraisal well had come in dry, because there is good seismic definition of the structure.
“The successful Elevala2 well would enable more gas reserves to be booked as having been found, and this in turn should aid the planning for development of this gas field.
“It is what petroleum retention licences are all about: further appraising the initial gas discovery whilst at the same time working out plans for development that may lead to eventual commercial exploitation of the retained gas field,” McWalter said.
Horizon operated the well with a 45% stake while Talisman Energy held 40% and Kina Petroleum, which listed on the Port Moresby Stock Exchange on Monday held the remaining 15%.