Exxon Hits More Gas with Papua Sidetrack

US major ExxonMobil has test results from the Muruk-1 sidetrack 3 well close to the LNG facility that it operates in Papua New Guinea, it said June 14.

The well, about  21 km northwest of the Hides gas field, flowed gas at 16mn ft³/day. The well rate was constrained by test facilities which limited tests to short flow and build up periods. Hydrocarbon samples were collected during the production test. ExxonMobil announced an earlier sidetrack success from Muruk on May 15 and is now saying a month later that Muruk is a "potentially significant new discovery."

“We are encouraged by these well test results and will integrate them into the ongoing resource evaluation work and potential appraisal programme in 2018,” said upstream president Steve Greenlee. “The success at Muruk adds to a growing resource base in PNG, through focused exploration and ExxonMobil’s recent acquisition of InterOil. These high-quality resources position the PNG LNG project for a multiple-train expansion that will continue to provide a highly competitive cost of supply.”

ExxonMobil bought InterOil in February of this year after founder and shareholder Phil Mulacek successfully resisted the first attempt last year, saying the price was too low.

The licence 402 covers 510 km² in the Papua New Guinea Highlands. Interest owners are ExxonMobil (42.5%), Oil Search (37.5%) and Barracuda, a subsidiary of Santos Limited (20%), with Oil Search as operator.

William Powell