ExxonMobil, Oil Search reveal new PNG gas find 🔓

Oil supermajor ExxonMobil announced Wednesday successful production test results in Papua New Guinea, supporting its plans for a multiple-train liquefied natural gas (LNG) expansion on its PNG LNG-operated project.

The positive results from the Muruk 1 sidetrack 3 well in PNG’s North Highlands confirmed a very good quality reservoir with a high deliverability consistent with the Toro reservoirs in the Central Fold Belt, ExxonMobil said. The well flowed gas at a rate of 16 million cubic feet per day (MMcf/d), Kallanish Energy learns.

Local oil and gas producer Oil Search started drilling the Muruk 1 well in November 2016. The Muruk drilling program discovered a potentially significant new gas field, 13 miles northwest of the Hides gas field and existing infrastructure — beneficial synergies for the companies.

“The data from the Muruk well and three sidetracks will be evaluated to assess the potential gas resource,” Oil Search said. “Follow-up well site preparations are being scheduled for late 2017 ahead of a potential appraisal programme in 2018.”

Steve Greenlee, president of ExxonMobil Exploration, noted the success at Muruk adds to the company’s growing resource base in PNG, through focused exploration and its recent acquisition of InterOil.

“These high-quality resources position the PNG LNG project for a multiple-train expansion that will continue to provide a highly competitive cost of supply.”

The PRL 402 license, which covers 126,000 acres in the Papua New Guinea Highlands, is operated by Oil Search. Owners include: ExxonMobil (42.5% interest); Oil Search (37.5%); and Barracuda, a subsidiary of Santos (20% interest).