Horizon Oil Looks at LNG Project in PNG

Australia based Horizon Oil has revised upwards the resource estimates for the Elevala and Ketu fields and the Tingu prospect located Petroleum Retention Licence (PRL) 21in Papua New Guinea's Western province and is now looking at a potential LNG project.

The resource estimates are based on the results of drilling the Elevala-2 and Ketu-2 wells, well testing and acquisition of core and fluid samples.  The new data has confirmed the extent of the fields, good reservoir quality in Elevala and the high liquids content, with condensate-gas-ratios of 50-60 barrels (bbl)/million standard cubic feet (mmscf) with a low inert gas content.  In addition, potential upside has been quantified within the Toro sandstone in Elevala and in the Elevala and Toro sandstones in the adjacent Tingu prospect. 

The Elevala and Ketu field gross proven and probable contingent resources are now put to be 795 billion cubic feet (bcf) of gas and 40 million barrels (mmbbl) of condensate contingent resources (gross).  A further best estimate prospective resources of 552 bcf and 31 mmbbl of condensate have been identified, the company said in a statement.

“This outcome, which represents a doubling of the certified resource size estimate before the drilling of the Elevala-2 and Ketu-2 appraisal wells, provides the incentive for detailed development planning,” Horizon Oil’s Chief Executive Officer, Brent Emmett, said. “The increased gas volume is approaching the scale required for a mid-scale LNG project and we are advanced in our pre-feasibilty studies of this opportunity.”

Horizon holds 45% of PRL 21, alongside partners Talisman Energy Niugini (32.5%), Kina Petroleum (15%) and Diamond Gas Niugini (7.5%).