The National, Tuesday 28th August, 2012
By MALUM NALU
KINA Petroleum Ltd (KPL) yesterday announced that development of petroleum resource licence (PRL) 21 in the Western province is deemed economic for a liquids stripping operation and that development studies are continuing. “At this stage, Kina’s estimated timetable to first liquids in the first quarter of 2015 continues to be considered achievable,” it said in an update to the Australian Securities Exchange (ASX).
“In addition, the contingent gas resource is about 1TCF (one trillion cubic feet) and preliminary studies indicate it may be commercialised sooner than previously thought.
“A number of options are being reviewed by the operator, Horizon Oil (Papua) Ltd, including the possibility of a midscale LNG project at around 1mtpa (million tonnes per annum) similar to those operating in Europe with Norgas and others.”Richard Schroder, managing director of KPL, said further drilling in PRL 21 would occur at Tingu and possibly another location in the first half of next year.
“We expect site clearance for these wells to commence soon,” he said.
“Following a recent meeting of the PRL 21 joint venture, KPL believes the liquids project in PRL 21 is looking very robust and we are very excited about the possibility of bringing forward a gas project as it will add significant value to the company.”
Participants in PRL 21 are Horizon Oil (Papua) Ltd with 45%, Talisman Energy Ltd (32.5%). Kina Petroleum Ltd (15%), and Diamond Gas Niugini BV (7.5%).