Drilling Report For Feb’19 Released By Oil Search

Drilling Report For Feb’19 Released By Oil Search

Oil Search Limited (ASX: OSH) announced exploration and appraisal drilling report for February 2019. It has provided an update on its three operated wells Muruk 2, Pikka B ST1 and Pikka C.

The drilling at well Muruk 2 with high Arctic Rig 104 commenced on 10 November 2018 with an objective to constrain the potential resource volumes in the field (Cretaceous Toro Sandstone). It is located at PDL 9, Highlands, PNG (around 11 km north-west of Muruk 1).

During the February month, 37.4 meters of the core was cut in the objective Toro reservoir, and the well was deepened to 3,820 meters. An extensive logging programme was conducted which has confirmed the presence of hydrocarbons. The forward plan is to conduct an extended well test over the Toro reservoir interval.

It is operated by Oil Search on behalf of Esso PNG Juha Ltd. Its participants include Oil Search (Tumbudu) Ltd with interest of 24.4%, Esso PNG Juha Ltd with interest of 21.7%, Ampolex (PNG) Ltd with interest of 21.7%, Kumul Petroleum (Kroton) Ltd with interest of 20.5%, Nippon PNG LNG LLC with interest of 9.7%, and Gas Resources Juha No. 1 Ltd with interest of 2.0%.

The drilling at well Pikka B ST1 with Doyon Arctic Fox rig commenced on 23 January 2019 with an objective to constrain the potential resource volumes in the field (Cretaceous Brookian Sandstone (Nanushuk)). It is located at Pikka Unit, Alaska North Slope. During the month, the Pikka B side track was drilled to a depth of 2,621 meters (8,599 feet), encountering the Nanushuk 3 sands. Ninety-one meters (300 feet) of cores were cut from the formation. The side-track core was oil saturated, like the initial Pikka B core, with high-quality rock observed. Flow-testing of the well has commenced. This will help establish flow rates and other data, including the volume, thickness, and quality of the Nanushuk reservoir at this location. It is operated by Oil Search (Alaska) LLC with the participation of 25.5%. Other participants include Repsol E&P USA, Inc with an interest of 49.0%, Armstrong Energy, LLC with an interest of 19.1%, and GMT Exploration Company, LLC with an interest of 6.4%.

The drilling at well Pikka C with Nabors 105E rig commenced on 23 January 2019 with an objective to reduce uncertainty on well deliverability by drilling a “proof of concept” development-type well (Cretaceous Brookian Sandstone (Nanushuk)). It is located at Pikka Unit, Alaska North Slope. During the month, the Pikka C well drilled through the Nanushuk formation to a depth of 1,601 meters (5,253 feet) and wireline logging activities were completed. The casing was set and a horizontal side-track well, Pikka C ST1, was kicked off from a depth of 978 meters (3,210 feet). Pikka C ST1 drilled a 1,006 meter (3,300 feet) lateral section in the reservoir to a total depth of 2,772 meters (9,093 feet). The forward plan is to stimulate and flow-test the well. It is operated by Oil Search (Alaska) LLC with the participation of 25.5%. Other participants include Repsol E&P USA, Inc with an interest of 49.0%, Armstrong Energy, LLC with an interest of 19.1%, and GMT Exploration Company, LLC with an interest of 6.4%.

On stock information, Oil Search’ share is trading at $8.245 up 0.426% (ASX: 02:25 PM on March 7, 2019) with the market capitalization of ~$12.51 Bn. Its current PE multiple is at 25.88x, and its earnings per share was noted at 0.317 AUD. Its 52 weeks high has been noted at $9.265 and low at $6.7. Its absolute return for 3 months, 1 year, and 5 years are 11.25%, 13.71%, and -6.35% respectively.


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