NGE prospects get boost from seismic results

Business, Normal

The National, Thursday 23rd August, 2012

NEW Guinea Energy would be encouraged by the results of 2D seismic carried out to de-risk two of its 100% owned onshore oil and gas exploration licences in Papua New Guinea.
The surveys had focused on the Jerai North structure in PPL 265 and a lead near the north-eastern shores of Lake Murray straddling the border of PPL 266 and PPL 268.
Analysis of the seismic data suggested that Jerai North, located about 20km from the southern coast of PNG and adjacent to the deepest part of the Morehead Graben where hydrocarbons would be most likely to occur, covers an area of 21sqkm.
The prospect was identified by aerogravity and magnetic surveys in 2009 in an area which is believed to host oil plays.
New Guinea had shot 94km of 2D seismic across four leads to confirm closure at Jerai North and constrain maximum depth of burial of potential Jurassic source rocks,
In PPL 266, the 48km infill survey suggested that the Macadamia structure could cover 36sqkm and lies along trend with Talisman Energy’s Puk Puk-1 gas discovery and the recently announced Weimang-1 gas find about 50km to southeast.
Structures in this vicinity are believed to be predominantly gas plays.
There is also encouragement from internal modelling it had carried out to evaluate the potential resource size of the prospects.
The company will now apply to the PNG Department of Petroleum and Energy to extend the licence period for PPL 265 and to seek clarification on the status of the earlier lodged extension request for PPL 266.
It will also continue to hold discussions with companies who have expressed interest in entering joint venture partnerships in these licences and may consider exploration activity to further de-risk the prospects.
Chief executive officer Grant Worner told Proactive Investors that while the company was confident of its seismic results, potential joint venture partners might have a different view or a different risk profile.
It is also putting into place plans for drilling in both licences.  – Proactive Investors

This strategy of identifying drillable targets and de-risking exploration activities is aimed at replicating the success it has had in farming out PPL 268 and PPL 269 to Talisman and the sale of PPL 277 to ExxonMobil and Oil