PNG Exploration Review

Transcription

1 PNG Exploration Review 8 th December Outline 1. OSL strategy and exploration s role Exploration drilling review Wasuma Korka Mananda CBM wells OSL exploration license refocus exploration focus ADT2 appraisal and follow-up Huria Flinders 5. Summary 2

2 Oil Search s Growth Strategy Optimise existing oil assets with a focus on: Maintaining safety and environmental performance Delivering 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 activities Deliver Oil Search operated Associated Gas and PL2 life extension projects Grow LNG business in PNG. LNG is the optimum commercialisation route Pursuing a two pronged strategy: PNG LNG Expansion: Gulf Area LNG Opportunity: Measured oil exploration. 3 Outline 1. OSL strategy and exploration s role Exploration drilling review Wasuma Korka Mananda CBM wells OSL exploration license refocus exploration focus ADT2 appraisal and follow-up Huria Flinders 5. Summary 4

3 Regional Top Toro Depth Map 100km 5 Regional Structural Cross-Section Limit of Drilling Oil Window 6

4 Papuan Basin Chronostratigraphy Mesozoic Rift/Sag passive margin End Cretaceous Uplift then sag Late Miocene to present day compression S Main Source Interval Next slide???gas Source 7 Early Jurassic Rift Paleogeography 100km 8

5 Frontal Fold Belt Seismic Transect Cecilia Nomad Karius Hides Darai Ieru Toro Darai Toro Toro Basement Syn-rift Syn-rift? Basement Basement Reprocessing of older seismic data giving better insight into geological evolution Thick and thin skinned compressional structures Hides an inversion structure with a thick syn-rift section under the core of the structure. Possible gas source?. 9 OSL Exploration Activity 2010 PPL260 OSL Korka PRL11/PDL8 Exxon 85 km 2D (Huria) Legend Drilling Juha Hides & Angore PPL219 OSL Mananda Attic Seismic 6 S PPL233 Exxon 45km 2D (Mubi) Kutubu & Agogo Gobe PPL219 OSL Wasuma During 2010 OSL; Drilled 3 wells Acquired 4,700+ km 2 3D Acquired 8 S 60+ km 2D PPL234/244 OSL 4720km2 3D >> Port Moresby 80km 142 E 144 E 146 E 10

6 Regional Top Toro Depth Map Fold Belt PPL260 OSL Korka Next Slide Only proven oil prone area of Foldbelt Focus for oil exploration PPL219 OSL Mananda Attic PPL219 OSL Wasuma 100km 11 Top Toro Depth Structure Map PPL260 OSL Korka Angore Moran Juha Hides PPL219 OSL Mananda Attic SE Mananda Agogo Hedinia Iagifu Usano PPL219 OSL Wasuma 20km Gobe/SE Gobe 12

7 Foldbelt Digital Elevation Model 143 E 144 E 6 S Juha Hides Mananda Moran Kutubu SE Hedinia Gobe SE Gobe 7 S 40km 100 s of wells drilled along fold belt, ~half with image logs Dips, fractures and break-outs available for each well in 3D space 3D model being constructed of 4 key horizons Stress regime varies along strike and sometimes within wells Fracture patterns and stress regime never analysed Could be related back to present plate dynamics and earthquake patterns Tied to 3D geology, could constrain plate models and stress through Neogene 13 3D Structural Models Unlock Complexity of the Foldbelt Mananda Attic SE Mananda Agogo Agogo Forelimb Top Darai Top Ieru Toro View looking NW. Toro is shaded by elevation 14

8 PPL219 - Wasuma Pre-drill vs Post-drill Interpretations Wasuma Hangingwall Pre-drill Hangingwall trap analogous to SE Gobe Deeper Footwall trap (Wasuma Deep) as secondary objective Wasuma Deep Wasuma Deep Post-drill No valid Hangingwall trap Footwall trap (Wasuma Deep) valid Logs indicate charge to Iagifu sandstone ~5m net reservoir 15 PPL260 Korka Results Korka Elevated gas (including C5) on mudlog Resistivity 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. SW Korka 1 NE Darai Ieru 8.5 Korka Toro Koi-Iange 6 16

9 PPL219 Mananda 5 Mananda Attic PPL233 APPL350 MANANDA 5 PDL6 PDL5 Moran 219 SE Mananda PPL219 APF Agogo Moro PPL233 PPL219 APPL 349 Mananda 5 PPL 219 Oil Search JX Nippon Oil & Gas WI % SW 10km Kutubu PDL2 Ridge Camp CPF NE Darai Ieru Toro Digimu Iagifu Koi-Iange Near field exploration opportunity along trend with SE Mananda & Agogo oil fields Toro sandstone primary objective - recovered oil, gas & water when tested at Mananda 3x Koi-Iange sandstone secondary objective Reserves: 30 mmbbl COS: 45% Opportunity to deepen well and further constrain Mananda Forelimb lead analogues to Agogo Forelimb Well drilling ahead 17 Mananda - 3D model of Top Toro NE Mananda-3 Mananda 5 Well Mananda-Attic SW Mananda-4 Libano Mananda-Forelimb View looking towards south-east Fault Plane 18

10 Mananda 5 well pad November Coal Bed Methane Potential in PNG? Oil Search has been awarded seven licenses for CBM exploration sq km in area Currently drilling 1 st well of 3 well campaign Objective - to refine coal location, rank and thickness. 20

11 Era Bed Coal Measures Log Examples Ketu ST-1 Elevala-1 Kiunga-1 21 Eastern Australia Comparison PNG Licence size comparison Source Origin 22

12 Outline 1. OSL strategy and exploration s role Exploration drilling review Wasuma Korka Mananda CBM wells OSL exploration license refocus exploration focus ADT2 appraisal and follow-up Huria Flinders 5. Summary 23 Gulf Area LNG Opportunity Gulf Area has relatively untested prospectivity, in a proven setting, across a range of play types: Pinnacle reefs Platform carbonates Early 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 PPL239 Recently completed farm in arrangements to 4 additional licences, subject to Ministerial approval 24

13 Gulf Area Licences PPL260 PRL03 Juha PRL02 PDL1 Hides PRL11 Angore PPL239 PRL PDL6 PDL5 PPL 233 Moran 6 S Kutubu PNG LNG Project Gas Resources Non PNG LNG Gas Resources Exploration Gas Resources Agogo PPL240 PDL2 PRL08 PPL219 PDL4 PDL3 PPL 338 Gobe Main APDL14 PPL PPL Uramu PRL10 PPL PPL Elk/Antelope PPL 7 S OSH Operated Licence OSH Interest Licence Petroleum Development Licence Petroleum Retention Licence Licence Application Farm in Licence Oil Field Gas Field Oil & Gas Field Oil Pipeline Proposed Gas Pipeline PPL 276 PPL312 Kumul Terminal PPL276 PPL234 Flinders Pandora PPL244 PRL01 PPL 234 PPL 244 PRL 1 PPL S 9 S 142 E 143 E 144 E 50km 145 E 146 E 147 E 25 Gulf Area Regional Plays Gas in Reefs + Turbidites + Fault Blocks NW PPL338, SE Tertiary Delta PPL234, 244, 312 PPL244, 312 PPL276 26

14 Offshore Regional Seismic Line Darai Platform edge Pasca Flinders Pliocene Deltaic Wedge Pasca Miocene Build-up Aure Fold-belt 200m 1000m 27 Flinders Prospect PPL244 NW SE Depth in m tvdss Base Pleistocene Flinders ~10km Line Spillpoint 2.4 my Intra Pliocene Marker Depth map Acoustic Impedance overlay 4 way dip closure coinciding with strong amplitude anomaly Interpreted as Basin Floor Fan Observed AvO response may be caused by gas bearing sand Most powerful argument for gas: Low Acoustic Impedance coinciding with structural closure Planned to be drilled in

15 PPL244 Lead Examples 2D Seismic NW SE SW NE Pasca Discovery Flinders Prospect Leads 29 PPL338 & PPL 338 and PPL farm-in details: Oil Search earns an initial 30% stake from Dabajodi International Energy for funding 2D seismic surveys Seismic to be acquired in Q If seismic is promising, Oil Search has option for additional 40% equity for part-funding a well and becomes Operator 338 PPL PPL 338 PPL 6 S PPL PPL PPL312 30

16 Indicative PPL338 Reefal Lead Sparse coverage of 1960 s vintage seismic data Strong indication of reefal build-ups 31 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 Q If seismic is promising, Oil Search has option for additional 50% equity for funding a well and becomes Operator PPL 276 New 3D seismic 32

17 Offshore Mesozoic Plays Somewhere in Gulf of Papua: Mesozoic play potential does exist offshore PNG Flat-spot conformable with structure Needs 3D seismic to fully evaluate prior to drilling 33 PPL312 farm in details: PPL312 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 Q If seismic is promising, Oil Search has option for additional 45% equity for funding a well Uramu PPL PRL10 PPL 312 Kumul Terminal PPL312 New 3D seismic 8 S PNG LNG Pipeline PPL234 34

18 Gulf of Papua Evaluation Plan 2D program Q1/ Feb km 2 Nov-Jan km 2 Jan km km 2 3D seismic over all known offshore Leads plus Flinders Prospect 35 Gulf of Papua 3D seismic Progress of PPL234/244 3D seismic survey Actual position of seismic vessel Wednesday, 1 Dec, 14:43 AEST Processed MC 3D seismic available from July

19 Outline 1. OSL strategy and exploration s role Exploration drilling review Wasuma Korka Mananda CBM wells OSL exploration license refocus exploration focus ADT2 appraisal and follow-up Huria Flinders 5. Summary 37 OSL Exploration Activity PRL3 Exxon 55km 2d (P nyang) PRL3 Exxon P nyang Appraisal 6 S Juha Hides & Angore PRL11/PDL8 Exxon Huria PDL2 OSH Agogo Forelimb Appraisal PDL2 OSH Hedinia Forelimb Legend Drilling Seismic Kutubu & Agogo PDL2 OSH Kube Kabe PDL4 OSH 2D seismic PRL9 STO Barikewa 3 Gobe PPL338 OSH 2D seismic PPL OSH 2D seismic During OSL will participate in; 8 S 7 wells ~2,000+ km 2 3D 200+ km 2D 80km 142 E PPL276 OSH 3D seismic 144 E >> Port Moresby PPL312 OSH 3D seismic PPL244 OSH Flinders PPL234 OSH Lead X 146 E 38

20 PDL2 - Agogo Forelimb Drilled 1100m+ overturned & steeply dipping Forelimb Underlies Agogo field & facilities Producing ~1,500 stb/d Forelimb 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 SW mtvd Toro A Toro B/C Hedinia Sand Digimu 7 Hangingwall Overturned Forelimb Digimu NE 3000 ST1 5 ST ST3 Alene 3D Structural Model Agogo Forelimb Mananda Attic 39 SW View looking NW. Toro is shaded by elevation red high, blue low NE Mananda Attic SE Mananda Agogo Agogo Forelimb Toro Koi-Iange 40

21 PDL2 Near Field Exploration This section is constrained by the IAG-2 seismic line, numerous wells and surface outcrop data The Hedinia forelimb is constrained by the Hedinia-4X well and analogy with Agogo The forelimb is likely to be over 10 km long and ~1 km high Opportunity could be tested by deepening an existing well The Koi-Iange sandstones, if present, beneath the Iagifu Anticline provide another attractive target for deepening of an existing well Hedinia Forelimb Iagifu Koi- Iange 41 PDL2 Koi-Iange play under the Iagifu Field SW Hedinia Field Iagifu Field NE IDT B Well Darai IDT B Well Ieru Top Toro A Surface Toro GOC Koi-Iange OWC Top Koi Iange North Testing the Koi-Iange fairway at IDT-B offers the potential to unlock significant further potential within PDL2 1 additional drill ready prospect (Agogo hanging wall) and 5 Leads with indicative cumulative recoverable reserves in the range of mmstb Bcf 42

22 Huria Prospect PRL11 / PDL8 PPL260 PRL02 PDL9 Huria Prospect PRL 11 Oil Search WI % PDL1 PDL8 PRL11 Exxon PPL239 PRL02 PRL02 PDL7 PDL7 PDL8 PPL219 PPL233 PRL11 Near field opportunity located adjacent to Angore and Hides gas fields PDL6 PDL5 Large, broad surface anticline SW metres 1000 MSL Strickland Darai Huria NE Ieru Toro Imburu Multi tcf potential Initial seismic completed, additional dip line currently being acquired Target drilling 4Q Outline 1. OSL strategy and exploration s role Exploration drilling review Wasuma Korka Mananda CBM wells OSL exploration license refocus exploration focus ADT2 appraisal and follow-up Huria Flinders 5. Summary 44

23 Summary Oil Search s ongoing exploration programme is closely linked to our strategy: Grow our LNG Business: Derisking and testing the Gulf Area LNG Opportunity Maturing reserves in the Foldbelt for PNG LNG expansion Adding value to our existing oil business: Targeting near field exploration Agogo Forelimb Koi-Iange Hedinia Forelimb Measured oil exploration Mananda 5 We remain committed to material exploration to the benefit of both OSL shareholders and PNG 45