PETROMIN NEWS

Antelope-2 Appraisal Well Intersects Potential Oil Zone

Managing Director of Petromin PNG Holdings Ltd, Joshua Kalinoe today announced the intersection of a potential oil zone in the lower part of the Antelope Reef reservoir within the Antelope-2 appraisal well, in the Gulf Province of Papua New Guinea.
Antelope-2 recently recorded the highest rate of high quality natural gas at 705 million cubic feet of gas per day (MMCFD), and condensate at rate of 11,200 barrels of condensate per day (BCPD), within the upper part of the Antelope Reef reservoir. Antelope-2 is a Joint-Venture appraisal well between Petromin PNG Holdings Ltd, Clarion Finance Pte and InterOil Corporation.
The indications of oil, if successfully tested to be a significant oil column and commercially viable, will completely change the economics of the 2nd LNG project for Papua New Guinea which is being driven by InterOil and Petromin.
Mr. Kalinoe said, “While cleaning the wellbore to conduct Drill Stem Test No.3, oil shows were circulated to surface at the depth of 2,325 meters. The well was then drilled ahead to 2,337.5m, when a drill break was encountered, and in drill samples recovered, light crude oil equivalent to 45 degrees API was extracted.
This is a very encouraging result, as it indicates that the top of an oil column under a column of gas may have been intersected.
The current operation includes a conventional core sampling program, followed by a wireline logging survey through the potential top oil zone. “Drill Stem Test No. 3 will then be performed over the zone below 2,330m to evaluate the nature of the oil indications, early this week,” Mr Kalinoe said.
He said the forward program after DST#3 will be to drill ahead to total depth of approximately 2,525m and possibly conduct a core sampling program as well. This will then be followed by a wireline logging survey, and a possible test after a full log and well evaluation.
Mr Kalinoe said that if a significant column of oil is discovered, the JV Partners will seek approval from the Department of Petroleum and Energy to conduct an Extended Well Testing program, possibly during the Second Quarter, 2010, to fully evaluate the reservoir fluids and structural properties, and to subsequently assess the commercial viability of the discovery.