Santos confirms first onshore Papua New Guinea discovery

Dec 25, 2002 01:00 AM

Santos has confirmed its first onshore Papua New Guinea oil discovery, with a test flowrate of 2,000 bpd from the Bilip-1 discovery well drilled by its Barracuda unit in Block PPL190 in the Southern Highlands of Papua New Guinea. Bilip-1 is located 10 km southeast of the SE Gobe Field.
The company said a closed chamber drillstem test was conducted in the Lagifu Sandstone reservoir over the interval 8,022-2,032 ft (2,445-2,448 meters). During a 22-minute flow period, an estimated stock tank oil volume of 30.5 barrel was produced giving an estimated average flow rate of 2,000 stock tank bpd of oil. Oil gravity is 46 degrees API and estimated solution gas/oil ratio is 1,200 cf per stock tank barrel.

Bilip is within the SE Gobe-Saunders structural trend and straddles the boundary between the two blocks PDL4 and PPL190. The Lagifu sandstone is the reservoir for the SE Gobe Field and for the adjacent Saunders-1 oil discovery.
"This is an encouraging result for Santos," said Santos' Managing Director, John Ellice-Flint. "We will now consider how best to proceed, including appraisal activity, near field oil exploration opportunities and appropriate production options for the discovery," he said.

The well will be cased and suspended as a future oil producer.
Santos is the operator of Block PPL190 with 31.278 % interest. Partners are Oil Search (31.278 %), Murray Petroleum (26.497 %), and Cue PNG Oil (10.947 %).

Source: OGI
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