Positive Production Test Results Seen at Stanley-5 Well in PDL 10 in PNG

Australia's Horizon Oil Limited referred to its last quarterly report dated July 31 that indicated that the Stanley-5 well in petroleum development license (PDL) 10 in Papua New Guinea (PNG), which was spud June 16 using Parker Rig 226, had been drilled to target total depth. Pleasingly the observed quality and size of the objective Toro and Kimu reservoirs were better than had been predicted, with a combined gross sand column of about 393 feet (120 meters) and net pay of about 314 feet (96 meters).

Horizon Oil, which is managing the drilling of the Stanley-5 and -3 development wells on behalf of the PDL 10 joint venture, carried out a production test over the Toro and Kimu zones. After a clean-up period of 24 hours, the Stanley-5 well flowed at approximately 68 million cubic feet of gas per day (MMcf/d), with associated condensate, on a 122/64 inch choke at a wellhead pressure of 3,233 psi. Log and test data from the well, together with wellhead condensate samples obtained, are consistent with pre-drill estimates and the Stanley -2 results.

The 2 production wells for the Stanley gas-condensate project (Stanly -2 and -5) are now completed, ready for production and, through testing, have demonstrated the capacity to produce well in excess of the design capacity of the Stanley gas plant (140 MMcf/d). With a condensate gas ratio 30 barrels/MMcf, the Stanley gas-condensate project is forecast to achieve initial production of approximately 4,000 barrels per day of condensate when the field commences production, scheduled in 2H 2016.

The Parker Rig 226 will now be skidded to commence drilling the final Stanley development well, the Stanley-3 injection well, from the current surface location. The Stanley-3 well has an anticipated spud date of Aug. 31.

Stanley project development activities continue with current focus on finalization and issue of equipment fabrication and construction tender packages, preparation for early works and engagement with the Stanley PNG State team (comprising representatives from key Government departments) and local landowners in respect of local content opportunities.

The PDL-10 participants, with their interests are:

  • Horizon Oil (Papua) Limited - 30 percent*
  • Talisman Niugini Pty Ltd (Operator) - 40 percent*
  • Osaka Gas Niugini Pty Ltd - 20 percent*
  • Diamond Gas Niugini B.V.^ - 10 percent*

*Subject to finalization of Stanley gas field unitization adjustments (which do not reduce Horizon Oil group interests) and PNG State Equity entitlement of 22.5 percent
^ Mitsubishi Corporation subsidiary


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