Oil Search Limited (ASX: OSH), a company from the energy sector and into the business of exploring, developing and producing oil and gas resources, with 98% of the Company assets in Papua New Guinea lately announced the exploration and appraisal drilling update till January 2019. While the company level updates were decent, the stock price was on a downtrend as at February 08, 2019, given the global jitters around the U.S.-China talk and higher oil production from U.S. impacting the overall oil and energy sector.
In its well named Muruk 2, situated in PDL 9, Highlands, PNG which is approximately 11 km north-west of Muruk 1, the company continued its drilling during November 2018. Here, the company is the operator of the project on behalf of Esso PNG Juha Ltd. The main focus of the drilling at Muruk 2 was to constrain the volume of potential resource in the field. On 10 November, through High Arctic Rig 104, the company drilled an eight and a half inches hole through the leru, and a seven inches liner was run and cemented at 3,509 metres. Before the commencement of the coring operations, the company drilled six inches hole to 3,537 metres into the Toro Formation. The initial outcome of the drilling of the well indicated that there might be the presence of hydrocarbons in the primary reservoir objective. The company will then go for deepened and wireline logging, sampling as well as pressure testing once the coring process gets completed. The deepened and wireline logging, sampling as well as pressure testing will confirm the presence of hydrocarbons as well as its nature.
In well named Pikka B, which is in the Pikka Unit, Alaska North Slope, the objective of the project was to constrain the potential resource volumes in the field. Oil Search Limited was the operator of the project.
The company used Doyon Arctic Fox rig at the Pikka B well on 31 December 2018. The rig penetrated the target Nanushuk Formation and this led to the discovery of hydrocarbons which were in line with the pre-drill expectations. During the Coring and processing of 146 metres Nanushuk, three sand and six open-hole logging runs got completed. As per the plan, after the drilling of a deep wellbore of 4,844 feet deep, it got plugged and abandoned.
The Pikka B ST1 is located in Pikka Unit, Alaska North Slope. The operator of the project was OSH. The main focus of the project was to constrain the volume of potential resource in the field. The company declared its Spud date on 23 January 2019. The company used a rig name Doyon Arctic Fox during the month to drill a side-track well which was 1,027 metres deep at an angle of 71-degrees from the original Pikka B wellbore.
The Pikka C well is located in the Pikka Unit, Alaska North Slope. OSH was the operator of the project. The drilling date decided was 23 January 2019, and on the same day, OSH stated that by the end of January 2019, the drilling on Pikka C attained a depth of 675 metres. The surface casing was established, and it got cemented. The company used the rig Nabors 105E with the target to decrease the uncertainty associated with the well deliverability by drilling a “proof of concept”, development-type well.
In the last six months, the stock reported a negative return of 12.28%. By the closure of the trading session, the price of the stock was A$7.720, which was down by 3.5% as compared to previous trading day’s closing price, and the market capitalization of circa A$12.19 billion and PE ratio of 37.310x was noted.
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