Drilling Update of Arakubi 1A St, PNG

Oil Search reports that the Arakubi 1A ST1 has reached a total depth of 3,200 meters and logging has been completed. Although the sidetrack penetrated the Toro Formation at the desired depth and location relative to the original hole, pressure measurements across the Toro have shown the sands to be water-bearing at this location.

Logs indicate that sands in the deeper Digimu, Hedinia and Iagifu reservoirs may be hydrocarbon bearing. The potential commerciality of production from these sands will be assessed as part of the ongoing development program for the Usano field area. The information about the pressure, fluid content, and reservoir potential of these sands will be used in future work in the area, in particular, some of the planned development wells in the Usano field.

The pressures recorded in the Toro Formation indicate that the reservoir interval has been affected by production of hydrocarbons elsewhere, possibly in the Usano field. Therefore, the possibility of using the Arakubi well as a water injector to enhance production is being considered.

The forward plan is to run casing and suspend the well, pending a full analysis of the results and development of a work program to optimize its future use as a potential producer/injector.