Kina Petroleum to Exit Papua New Guinea License

Kina Petroleum Limited announced Thursday that it will exit exploration license PPL 337 after failing to encounter commercial quantities of hydrocarbons.

Along with its joint venture partner Heritage Oil Ltd, Kina drilled the Raintree-1 and Kwila-1 wells in the license last year. While the wells achieved their objective of testing the existence of a Miocene reef play and a plio/pliostecene sandstone play, they failed to intersect commercial levels of oil and gas and were subsequently plugged and abandoned.

Following the evaluation of drilling results, Kina has concluded that “there is insufficient remaining prospectivity in the license to warrant further exploration work, particularly given the current oil price climate.”

Kina Petroleum’s Managing Director, Richard Schroder, commented in a company statement:

“Last year’s drilling in PPL 337 were a milestone for both the country and the company, however evaluation of the drilling results suggests that the prospects of a commercial discovery in the license is, for the foreseeable future, low.

“Our strategy and areas of focus remain clear, and surrendering the license allows us to optimize our asset portfolio during a period where low oil prices will continue to necessitate step changes throughout the broader industry.”



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  WA Court Orders OBL to Resign as EP487... (May 27)
 -  Real Energy Completes Taramara-1 Fract... (May 27)
 -  Indonesia Awards North Kalimantan's Of... (May 27)
 -  Amec FW Clinches KOC's FEED Contract t... (May 27)
 -  Malaysia's ICON Posts Revenue of $12.8... (May 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Division Order Analyst - Midland
Expertise: Accounting|Customer Service|Lease Analyst
Location: Midland, TX
 
Natural SalesAccount Executive
Expertise: Business Development
Location: Houston, TX
 
Drilling Engineer Advisor
Expertise: Drilling Consultant|Drilling Engineering
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $49.59/BBL 0.30%
Light Crude Oil : $49.48/BBL 0.16%
Natural Gas : $1.96/MMBtu 1.50%
Updated in last 24 hours