Kina confident in Ketu gas resource

KINA Petroleum Ltd (KPL) continues to add value by de-risking the west gas resource near PRL (petroleum resource licence) 21, according to an update released this week.
“The Ketu field resource upgraded exceeded our previous estimate by about 300%,” the report said.
“What this means is the wet gas resource within PRL 21 (Elevala and Ketu fields) is one of sufficient size to underpin a standalone liquids-stripping gas-recycle project.
“Furthermore, the gas is large enough to start attracting the attention of a PNG incumbent’s regional gas aggregation LNG strategy.
“We have incorporated the upgrade into our forecasts and made some upward revisions to our forecast capital costs.”
Kina said:
l    The timing of the re­-
source upgrade for the Ke­tu field was well-flagged but the size exceeded its original estimate of 94 billion cubic feet (BCF) by about 300%;
l    Given the scale of the wet gas resource being delineated within PRL 21, it believes there is now a strong commercial incentive for a standalone joint venture project; and
l    Subject to joint venture approval, the Tingu-1
appraisal well could be drilled in early 2013 after the well site pad has been prepared in late 2012.