Oil Search Announces Regarding Recertification of P’nyang Field Results in Increase in Certified 1C and 2C Gas Resources

Oil Search advised that a recertification of gas resources in the P’nyang field in PRL 3 (Oil Search – 38.51%) has been completed by independent expert, Netherland, Sewell & Associates, Inc. (NSAI). The recertification, which incorporated the results of the recent successful P’nyang South 2 ST1 appraisal well, as well as additional seismic and core data, has resulted in a material increase in both 1C and 2C certified gas resources. The certified 1C gross contingent gas resource has more than tripled, to 3.51 trillion cubic feet (tcf), while certified 2C contingent gas resources has increased to 4.36 tcf.

Oil Search’s Managing Director, Peter Botten said:

“The significant increase in certified P’nyang 1C and 2C gas resources is an excellent result, with the NSAI certified volumes broadly in line with Oil Search’s internal estimates following the remapping of the field with reprocessed seismic data and the successful P’nyang South 2 ST1 well. Oil Search will report any update to its internal resource estimates resulting from this additional information in its 2018 Reserves and Resources Report.

Combined with gas resources in the Elk-Antelope fields in PRL 15, Oil Search believes there is now approximately 11 tcf of certified gross undeveloped 2C gas resource available to support the proposed development of 8 MTPA of additional, globally competitive, LNG capacity at the existing PNG LNG plant site. Importantly, there is in excess of 8 tcf of 1C resource, which will greatly assist marketing activities within each venture.

Ongoing discussions are taking place between the PRL 3, PRL 15 and PNG LNG joint ventures, as well as the PNG Government, on the preferred development concept for LNG expansion, which proposes one new train underpinned by gas from P’nyang and the PNG LNG Project fields and two trains dedicated to Papua LNG, supplied with gas from the Elk-Antelope fields. The joint ventures are targeting entry into Front End Engineering and Design on this expansion in the second half of 2018.”


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