Santos Reports Significant Natural Gas Resource in PNG

Santos (ASX:STO), has announced the Barikewa-3 well, located in Papua New Guinea’s onshore Forelands region, intersected 25 metres of net gas pay within the Toro and Hedinia reservoir objectives. According to the company, reservoir quality exceeded pre-drill expectations and the appraisal well successfully intersected a gas-water contact in the Hedinia.

As quoted from the press release:

A drill-stem test was carried out across the Toro interval at 1,729 to 1,743 metres and flowed gas to surface at 35 million standard cubic feet of gas per day (mmscf/d) on a 68/64” choke. On-site analysis of the gas from the drill-stem test and earlier wireline sampling confirms a dry gas with approximately 20 percent nitrogen and very low levels of other impurities, in line with pre-drill expectations.
The well, in petroleum permit PRL9, reached total depth of 1,943 metres on July 15, and will be plugged and abandoned as planned upon completion of the test and data retrieval.

“The Barikewa-3 result is encouraging and confirms that there are significant natural gas resources close to PNG LNG infrastructure still to be developed.”Santos Managing Director and Chief Executive Officer Kevin Gallagher said.

“Barikewa is located approximately 10 kilometres from the PNG LNG gas pipeline and is therefore well placed to play a part in future LNG expansion projects,” Gallagher added.

Click here to read the full announcement