Oil Search Updates on Hagana 1 Drilling

Oil Search reported that as at 06:00 hours PNG time July 4, the Hagana 1 well was at a depth of 9,022 feet and logging the 12.25 inch hole section, which includes the primary objective.

During the week, 1,703 feet was drilled.

Preliminary evaluation of the log data indicates that the primary objective Pleistocene sand is 115 feet thick and of good reservoir quality, though appears to be water bearing.

The presence of significant sandstones at the Pleistocene level in Hagana has de-risked one of the main uncertainties in the basin floor fan sandstone play, confirming the broader potential of the Pleistocene stratigraphic level in the Gulf of Papua. The data gathered will allow the seismic data over the area to be calibrated with real rock data and will enable a thorough analysis of other prospective locations in the Gulf of Papua.

The forward programme is to drill ahead to the secondary, Pliocene age target, at an approximate depth of 10,827 feet.

The Hagana prospect lies approximately 140 miles west-northwest of Port Moresby and 6.2 miles northeast from the Flinders 1 gas discovery, in a water depth of approximately 344 feet. The primary objective is a submarine, basin-floor fan sandstone of Pleistocene age, with a Pliocene age secondary objective.

The participants in Hagana 1 are:

Oil Search : 40 percent
Total E&P PNG 4 B.V.: 40 percent
Nippon Oil Exploration (Niugini) Pty Limited : 20 percent



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