PNG Exploration Review - Oil Search · Coal Bed Methane Potential in PNG? ... Oil Pipeline Proposed...
Transcript of PNG Exploration Review - Oil Search · Coal Bed Methane Potential in PNG? ... Oil Pipeline Proposed...
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PNG Exploration
Review
8th December 2010
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Outline
1. OSL strategy and exploration’s role2. 2010 Exploration drilling review
• Wasuma• Korka• Mananda• CBM wells
3. 2010 OSL exploration license refocus4. 2011 exploration focus
• ADT2 appraisal and follow-up• Huria• Flinders
5. Summary
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Oil Search’s Growth Strategy
Optimise existing oil assets with a focus on:Maintaining safety and environmental performanceDelivering gas supply obligations and life extension whilst adding value from reserve adds and cost management
Support delivery of PNG LNG Project:Support ExxonMobil with in country activitiesDeliver Oil Search operated Associated Gas and PL2 life extension projects
Grow LNG business in PNG. LNG is the optimum commercialisation routePursuing a two pronged strategy:
PNG LNG Expansion:Gulf Area LNG Opportunity:
Measured oil exploration.
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Outline
1. OSL strategy and exploration’s role2. 2010 Exploration drilling review
• Wasuma• Korka• Mananda• CBM wells
3. 2010 OSL exploration license refocus4. 2011 exploration focus
• ADT2 appraisal and follow-up• Huria• Flinders
5. Summary
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Regional Top Toro Depth Map
100km
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Regional Structural Cross-Section
Oil Window
Limit of Drilling
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Papuan Basin Chronostratigraphy
Mesozoic Rift/Sag passive marginEnd Cretaceous Uplift then sagLate Miocene to present day compression
S
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Main Source Interval
??Gas SourceNext slide
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Early Jurassic Rift Paleogeography
100km
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Frontal Fold Belt Seismic Transect
Reprocessing of older seismic data giving better insight into geological evolutionThick and thin skinned compressional structuresHides an inversion structure with a thick syn-rift section under the core of the structure. Possible gas source?.
Darai
Ieru
Toro
Basement Syn-rift Syn-rift?
Toro
Toro
Darai
Basement
Basement
Cecilia Nomad HidesKarius
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OSL Exploration Activity – 2010
>>
Port M
oresb
y
80km
Juha
Gobe
Kutubu & Agogo
Hides & Angore
144°E
8°S
6°S
146°E142°E
PPL219 OSLMananda Attic
PRL11/PDL8 Exxon85 km 2D (Huria)
PPL234/244 OSL4720km2 3D
PPL233 Exxon45km 2D (Mubi)
Drilling
Seismic
LegendPPL260 OSLKorka
PPL219 OSLWasuma
During 2010 OSL;Drilled 3 wellsAcquired 4,700+ km2 3DAcquired 60+ km 2D
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Regional Top Toro Depth Map
Fold Belt
Next Slide
PPL219 OSLMananda Attic
PPL260 OSLKorka
PPL219 OSLWasuma
100km
Only proven oil prone area of Foldbelt
Focus for 1986+ oil exploration
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Top Toro Depth Structure Map
Hedinia Iagifu Usano
Gobe/SE Gobe
Juha
Hides
Angore
Moran
Agogo
SE Mananda
PPL219 OSLMananda Attic
PPL219 OSLWasuma
PPL260 OSLKorka
20km
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Foldbelt Digital Elevation Model
100’s of wells drilled along fold belt, ~half with image logsDips, fractures and break-outs available for each well in 3D space3D model being constructed of 4 key horizonsStress regime varies along strike and sometimes within wellsFracture patterns and stress regime never analysedCould be related back to present plate dynamics and earthquake patternsTied to 3D geology, could constrain plate models and stress through Neogene
6°S
143°E
7°S40km
144°E
Hides Mananda Moran Kutubu SE Hedinia SE GobeGobeJuha
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3D Structural Models Unlock Complexity of the Foldbelt
Toro
View looking NW. Toro is shaded by elevation
Mananda Attic
Top Darai
Top Ieru
SE Mananda
Agogo Forelimb
Agogo
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PPL219 - WasumaPre-drill vs Post-drill Interpretations
Pre-drillHangingwall trap analogous to SE GobeDeeper Footwall trap (Wasuma Deep) as secondary objective
Post-drillNo valid Hangingwall trapFootwall trap (Wasuma Deep) valid
Logs indicate charge to Iagifu sandstone~5m net reservoir
Wasuma Deep
Wasuma Hangingwall
Wasuma Deep
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PPL260 Korka Results
Elevated gas (including C5) on mudlogResistivity separation and mudcake build-up indicative of permeability.
Confirmed by RDT pressure and sampling data.Initial Petrophysical interpretation indicated presence of hydrocarbons - not supported by pressure data, which returned an unambiguous water gradient.Absence of Cross fault seal SE of Korka has allowed communication and flushing between Lavani 1, Muller 1X, Egele 1X/1XST1, and Korka 1.
8.5”
6”
Darai
Ieru
Toro
Koi-Iange
NESW Korka 1
Korka
Korka
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PPL219 – Mananda 5Mananda Attic
28.75JX Nippon Oil & Gas
71.25Oil Search
WI %PPL 219
Near field exploration opportunity along trend with SE Mananda & Agogo oil fieldsToro sandstone primary objective -recovered oil, gas & water when tested at Mananda 3xKoi-Iange sandstone secondary objective Reserves: 30 mmbblCOS: 45% Opportunity to deepen well and further constrain Mananda Forelimb lead – analogues to Agogo ForelimbWell drilling ahead
APF
SE ManandaMoran
Agogo
MANANDA 5
PDL6
PPL219
PPL233
PDL5
PDL210km
PPL233
PPL219
219
APPL349
APPL350
KutubuCPFRidge Camp
Moro
Darai
Ieru
ToroDigimu
Koi-Iange
Iagifu
NESW
Mananda 5
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Mananda - 3D model of Top Toro
Mananda-3
Mananda-4
Fault Plane
Mananda 5 Well
Mananda-Forelimb
View looking towards south-east
Libano
NE SWMananda-Attic
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Mananda 5 well padNovember 2010
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Coal Bed Methane Potential in PNG?
Oil Search has been awarded seven licenses for CBM exploration17500 sq km in areaCurrently drilling 1st well of 3 well campaignObjective - to refine coal location, rank and thickness.
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Era Bed Coal MeasuresLog Examples
Ketu ST-1 Kiunga-1Elevala-1
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PNG Licence size comparison
Source Origin
Eastern Australia Comparison
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Outline
1. OSL strategy and exploration’s role2. 2010 Exploration drilling review
• Wasuma• Korka• Mananda• CBM wells
3. 2010 OSL exploration license refocus4. 2011 exploration focus
• ADT2 appraisal and follow-up• Huria• Flinders
5. Summary
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Gulf Area LNG Opportunity
Gulf Area has relatively untested prospectivity, in a proven setting, across a range of play types:
Pinnacle reefsPlatform carbonatesEarly and late Pliocene turbidites
Oil Search has high graded acreage and built a broad position:
Increased equity in Pandora (PRL01) to 24%Increased equity in PPL244 as a result of the swap with Talisman for PPL239Recently completed farm in arrangements to 4 additional licences, subject to Ministerial approval
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Gulf Area Licences
PRL03
PRL11
PRL12PPL239
PDL1
233
PRL02
PDL5PDL6
PPL260
PNG LNG ProjectGas Resources
Non PNG LNG Gas Resources
ExplorationGas Resources
OSH Operated LicenceOSH Interest LicencePetroleum Development LicencePetroleum Retention LicenceLicence Application“Farm in” LicenceOil FieldGas FieldOil & Gas FieldOil PipelineProposed Gas Pipeline
Kumul Terminal
PRL01
PPL234
PRL10
9°S
145°E 146°E 147°E144°E143°E142°E
Pandora
PRL08
PPL240
PPL233
PPL190
PPL219PDL2
PDL4
PDL3
APDL14
AngoreJuha
Hides
Agogo
Kutubu
Gobe Main
Uramu
Moran
PPL276
PPL312
PPL338
PPL339
PPL339
339
339
338
338
338339
339
339
339
9°S
8°S
7°S
6°S
339
PPL244
PPL 276
PPL 339
PPL 312
PPL 338
50km
Flinders
PPL 339
PPL 244
PPL 234
PRL 1
Elk/Antelope
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Gulf Area Regional PlaysGas in Reefs + Turbidites + Fault Blocks
TertiaryDelta
NW SE
PPL244, 312
PPL338, 339
PPL276
PPL234, 244, 312
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Offshore Regional Seismic Line
200m
1000m
Pasca Miocene Build-up
AureFold-belt
Pliocene Deltaic Wedge
FlindersDaraiPlatform edge
Pasca
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Flinders ProspectPPL244
4 way dip closure coinciding with strong amplitude anomalyInterpreted as Basin Floor Fan Observed AvO response may be caused by gas bearing sandMost powerful argument for gas: Low Acoustic Impedance coinciding with structural closurePlanned to be drilled in 2011
Spillpoint
2.4 my Intra Pliocene MarkerDepth map
Acoustic Impedance overlay
Base Pleistocene
Line 98-200-407~10km
NW SE
FlindersDepth in m tvdss
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PPL244 Lead Examples – 2D Seismic
SENW SW NE
Pasca Discovery
Flinders Prospect
Leads
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PPL338 & 339
PPL 338 and PPL339 farm-in details:
Oil Search earns an initial 30% stake from Dabajodi International Energy for funding 2D seismic surveys
Seismic to be acquired in Q1 2011
If seismic is promising, Oil Search has option for additional 40% equity for part-funding a well and becomes Operator
6°S
PPL312
PPL338
PPL339
PPL339
339
339
338
338
338339
339
339
PPL 339
PPL 338
PPL 339
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Indicative PPL338 Reefal Lead
Sparse coverage of 1960’s vintage seismic dataStrong indication of reefal build-ups
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PPL276
PPL 276 farm in details:Oil Search earns an initial 30%stake from Rockwell Energy for funding a 3D seismic survey in the licence
3D Seismic to be acquired in Q1 2011
If seismic is promising, Oil Search has option for additional 50% equity for funding a well and becomes Operator
PPL 276
New 3D seismic
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Offshore Mesozoic Plays
Somewhere in Gulf of Papua:Mesozoic play potential does exist offshore PNGFlat-spot conformable with structureNeeds 3D seismic to fully evaluate prior to drilling
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PPL312
PPL312 farm in details: Oil Search earns an initial 30% stake and operatorship from Hillsborough for funding a 3D seismic survey in the licence
Seismic to be acquired in Q1 2011
If seismic is promising, Oil Search has option for additional 45% equity for funding a well
Kumul Terminal
PPL234
PRL10
PPL312
PPL339
339
339
339
339
Uramu
8°S
PPL 312
New 3D seismic
PNG LNG Pipeline
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Gulf of Papua Evaluation Plan
6285km2 3D seismic over all known offshore Leads plus Flinders Prospect
Nov-Jan 20104700 km2
Jan 2011400 km2
Feb 20111185 km2
2D program Q1/2 2011
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Gulf of Papua 3D seismic
Processed MC 3D seismic available from July 2011
Progress of PPL234/244 3D seismic survey Actual position of seismic vessel Wednesday, 1 Dec, 14:43 AEST
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Outline
1. OSL strategy and exploration’s role2. 2010 Exploration drilling review
• Wasuma• Korka• Mananda• CBM wells
3. 2010 OSL exploration license refocus4. 2011 exploration focus
• ADT2 appraisal and follow-up• Huria• Flinders
5. Summary
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OSL Exploration Activity –2011-12
>>
Port M
oresb
y
80km
Juha
Gobe
Kutubu & Agogo
Hides & Angore
144°E
8°S
6°S
146°E142°E
PDL2 OSHAgogo Forelimb Appraisal
PRL9 STOBarikewa 3
PRL11/PDL8 ExxonHuria
PPL276 OSH3D seismic
PPL244 OSHFlinders
PRL3 Exxon55km 2d (P’nyang)
Drilling
Seismic
Legend
PRL3 ExxonP’nyang Appraisal
PDL2 OSHHedinia Forelimb
PDL2 OSHKube Kabe
PPL312 OSH3D seismic
PPL338 OSH2D seismic
PPL339 OSH2D seismic
PPL234 OSHLead X
During 2011-12 OSL will participate in;7 wells~2,000+ km2 3D200+ km 2D
PDL4 OSH2D seismic
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ST3
2400
2600
2800
3200
OverturnedForelimb
HangingwallmTVD
Alene
3000
DigimuToro A
SW NE
Hedinia Sand
Toro B/C
PDL2 - Agogo Forelimb
Drilled 1100m+ overturned & steeply dipping ForelimbUnderlies Agogo field & facilitiesProducing ~1,500 stb/dForelimb trend can be traced 75km from Mananda in NW to Hedinia in the SE suggesting that Toro to Koi-Iange targets may be present beneath other producing fields
Digimu
7”
ST1 5”ST2
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3D Structural ModelAgogo Forelimb – Mananda Attic
Toro
View looking NW. Toro is shaded by elevation – red high, blue low
Mananda Attic
Koi-Iange
Agogo Forelimb
Agogo
SE Mananda
SW NE
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PDL2 – Near Field Exploration
This section is constrained by the IAG-2 seismic line, numerous wells and surface outcrop dataThe Hedinia forelimb is constrained by the Hedinia-4X well and analogy with AgogoThe forelimb is likely to be over 10 km long and ~1 km highOpportunity could be tested by deepening an existing wellThe Koi-Iange sandstones, if present, beneath the Iagifu Anticline provide another attractive target for deepening of an existing well
Iagifu Koi-Iange
Hedinia Forelimb
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PDL2 – Koi-Iange play under the Iagifu Field
Iagifu FieldHedinia Field
Darai
Ieru
Toro
Koi-Iange
NESWIDT B Well
IDT B Well
GOC
OWC
Top Toro A Surface
Top Koi Iange
North
Testing the Koi-Iange fairway at IDT-B offers the potential to unlock significant further potential within PDL21 additional drill ready prospect (Agogo hanging wall) and 5 Leads with indicative cumulative recoverable reserves in the range of 50 -100mmstb + 500-1000Bcf
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Huria ProspectPRL11 / PDL8
Near field opportunity located adjacent to Angore and Hides gas fields
Large, broad surface anticline
Multi tcf potential
Initial seismic completed, additional dip line currently being acquired
Target drilling 4Q11
47.50Exxon
52.50Oil Search
WI %PRL 11
MSL
-1000
-2000
-3000
-4000
1000
-5000
SW
Ieru
Darai
ImburuToro
Strickland
Huria
NE
metres
PRL11
PDL7
PPL239
PDL1
PRL02
PPL260
PDL7
Huria Prospect
PPL219 PPL233
PDL6 PDL5
PDL9
PRL11
PDL8
PDL8
PRL02
PRL02
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Outline
1. OSL strategy and exploration’s role2. 2010 Exploration drilling review
• Wasuma• Korka• Mananda• CBM wells
3. 2010 OSL exploration license refocus4. 2011 exploration focus
• ADT2 appraisal and follow-up• Huria• Flinders
5. Summary
45
Summary
Oil Search’s ongoing exploration programme is closely linked to our strategy:
Grow our LNG Business:Derisking and testing the Gulf Area LNG OpportunityMaturing reserves in the Foldbelt for PNG LNG expansion
Adding value to our existing oil business:Targeting near field exploration
Agogo ForelimbKoi-IangeHedinia Forelimb
Measured oil explorationMananda 5
We remain committed to material exploration to the benefit of both OSL shareholders and PNG