Austral Pacific Spuds Douglas-1

Austral Pacific Energy reports that the Douglas-1 exploration well commenced drilling on Tuesday. Douglas-1 is located in PPL 235 (Austral 35 percent, operator) in the onshore Papuan Foreland Basin, Papua New Guinea.

Douglas-1 will test the seismically defined Douglas structure and will take approximately three weeks to drill to a depth of 2000 meters (6,500 feet). Primary reservoir targets for the well are the Jurassic-aged Alene, Toro, and intra Imburu sandstones. In offset locations within the Papuan Fold belt and Foreland Basin, these sandstones reportedly provide the reservoir for more than 500 million barrels of oil and 10 trillion cubic feet of gas. Sandstones developed within the Oligocene-aged Sirga Formation are also mapped within closure and constitute a secondary target for the well.

"The well is located on a well-defined structure that in the oil case could hold 150 million barrels of reserves," said Rick Webber, Austral Pacific's CEO. "All the indicators are positive and I am very optimistic."