Horizon Oil Updates PNG Operations

Australia listed Horizon Oil on Wednesday reported that Stanley-5 well in Papua New Guinea flowed at about 68 million cubic feet of gas per day (mmcfd), with associated condensate.

Horizon Oil which is managing the drilling of the Stanley-5 and -3 development wells on behalf of the PDL 10 joint venture, carried out a production test over the Toro and Kimu zones.

The two production wells for the Stanley gas-condensate project (Stanley -2 and -5) are now completed, ready for production and, through testing, have demonstrated the capacity to produce well in excess of the design capacity of the Stanley gas plant (140 mmcfd), the company said.

With a condensate gas ratio 30 barrels / mmcf, Horizon expects the Stanley gas-condensate project to achieve initial production of approximately 4,000 barrels/ day of condensate when the field commences production, scheduled in the second half of 2016.

The Parker Rig 226 will now be skidded to commence drilling the final Stanley development well, the Stanley-3 injection well, from the current surface location. The Stanley -3 well has an anticipated spud date of 31 August 2014.

Participants Interest: Horizon Oil (Papua) Limited 30%; Talisman Niugini Pty Ltd (Operator) 40%; Osaka Gas Niugini Pty Ltd 20%; Diamond Gas Niugini B.V. 10%.