Petroleum Prospecting Licence 435


Kina was granted, on 20th July 2012, a 50% share and operatorship in PPL 435. Kina’s JV partner in PPL 435 is Cott Oil and Gas

Location and Infrastructure

PPL 435 covers and area of 5713 km2 onshore and is located within the foreland of the Western Province. It is approximately 40km south-west of PRL 21 and has Fly River access with the river Port Aiambak located in the south.

Geology

PPL 435 overlies the Lake Murray High. The Elevala and Toro reservoirs onlap the Murray High, but a prospective Cretaceous Sandstone was intersected in Lake Murray 2 on top of basement. A fairway of good quality early Cretaceous reservoir is interpreted to extend over most of the licence area.

Other reservoirs within PPL 435 include the Darai carbonates. A gas flow in Lake Murray 1from basal Cretaceous sandstone confirms gas migration as far south as Lake Murray and gas shows within the Darai Limestone also high grade these carbonates as an exploration target.

Previous Exploration

Reconnaissance seismic surveys were acquired along the Fly and Strickland Rivers in 1970-71. This was followed by the Lake Murray survey in 1972-73. Two exploration wells Lake Murray-1 and -2 were drilled by Conoco in 1973. Lake Murray-1 flowed 284,000 cubic feet of gas per day from a two metre thin sandstone in the Juha member of the leru Formation and significant gas shows in the shallower Darai Limestone offer encouragement for this play also. Lake Murray-2 confirmed a Cretaceous sandstone reservoir on basement with a thickness of 43 m.

Proposed Exploration

A number of leads have been identified south of the Lake Murray 1 and 2 wells. The Aiambak leads are very close to the existing Aiambak Port on the Fly River. An aeromagnetic and aerogravity survey was undertaken in 2014. Basement architecture is being assessed with integration of the new data and existing seismic control. Initial interpretation supports the presence of the Fly River Fault, a major down to the south fault separating the Lake Murray High and the Morehead Sub Basin sequence.

Lake Murray East Lead is a large simple drape feature best seen on vintage seismic data. It appears to involve early cretaceous and Late Jurassic reservoirs. The vintage seismic data is being reprocessed in advance of seismic acquisition.

A proprietary integrated aerogravity and aeromagnetic data set now provides full gravity and aeromagnetic coverage over PPLs 435 & 436. Preliminary interpretation suggests two major zones of structural interest: a zone of Triassic basement north of the Fly Fault and an uplifted area of Palaeozoic/Proterozoic basement in the south, separated by a deep sedimentary pile (the Morehead Graben). Areas of primary interest remain the Oriomo High, containing the Dalbert, Alligator, Sturt and Oriomo prospects in PPL 436 and the Aiambak and Lake Murray East prospects in PPL 435. At Aiambak there appears to be inversion along the Fly River fault which involves uplift of older reservoir rocks south of wet gas flows in Lake Murray-1. The commercial potential of the Aiambak area is enhanced due to its proximity to river transport at Aiambak port. Reprocessing will be undertaken over Aiambak and Lake Murray East features; Lake Murray East is a large simple drape over a basement high.

KPL is commencing a major reprocessing effort of the existing seismic data base over PPLs 435 and 436. The focus of the reprocessing will be to confirm stratigraphy and thickness of reservoir sequences at Aiambak, Lake Murray East, Dalbert, Alligator, Sturt and Oriomo.