Petroleum Prospecting License 437
Kina was awarded an 80% working interest in PPL 337 on 11th December, 2012. Kina’s JV partner with 20% was Cott Oil and Gas
Location and Infrastructure
PPL 437 covers an area of 1530km2 onshore and is located within the Papuan Basin in northern foreland of Western Province. The licence abuts the northern boundary of PRL 21 where engineering studies are underway assessing the development options for oil and gas development.
PPL 437 overlies a complete Papuan Basin sequence with all reservoir targets expected to be present with the exception of the Magobu.
Based on results of drilling at Elevala and Ketu discoveries the Elevala sandstone is considered to be the primary objective. However recent results at Stanley support the potential of the Toro and Kimu Sandstone objectives within PPL 437.
Texaco, Santos and Union oil have acquired seismic surveys in or near PPL 437 in the 1970’s and 1980’s. No wells have been drilled in the licence, but discoveries at Elevala, Ketu and Tingu attest to the exploration potential of PPL 437.
Heritage Joint Venture
Heritage Oil farmed in to PPL 437 in November 2013. Kina is being carried through an initial seismic program of not less than 100 line km, with a further option by Heritage to carry Kina through a follow up exploration well. Under the terms of the farm in Heritage earns up to 50% of the licence from Kina’s original 80% holding.
In late 2014 Kina’s original JV partner Cott decided to divest itself of its PPL 437 obligations and its 20% was distributed pro-rata to Kina and Heritage, rather than Cott having to pay its 20% of the costs for the Gosur seismic program.
Based on legacy seismic data three leads have been identified in PPL 437. A seismic acquisition program of 108 km (Gosur) was acquired over the Malisa Prospect in 2014. The Malisa Prospect is a large closure west of Tingu with Elevala, Toro and Kimu sandstone objective. Based on the results of Tingu good Elevala sandstones are expected to be present.
Interpretation of the 2014 Gosur Seismic Survey is nearing completion. The Malisa South Prospect was confirmed along trend from and analogous to the Tingu structure in adjacent PRL 21. Malisa South is the focus for the PPL 437 Joint Venture due to its proximity to the proposed PRL 21 development and the presence of good quality Elevala and Toro Sandstones intersected in Tingu-1 in 2013.
In Q4 2014 Horizon Oil spudded Nama-1 in neighbouring PPL 259. Nama was drilled to 3,533 m and encountered 77m of Elevala, Toro and Kimu sandstones. The sands were well developed and gas-saturated, however on the basis of reservoir properties the well was considered non-commercial.
Malisa South is 40km east of Nama-1 and is 35km north of Tingu-1 where reservoir quality is good. Based on the seismic interpretation out of Tingu and Stanley, Malisa South looks to have a well-developed reservoir sequence.