Project Profile
Location: Ramu Sub Basin close to Madang, Papua New Guinea
Area: 5,508 km2
Start-up Year: -
On 2nd September 2009, Kina was awarded a 100% working interest in PPL 337. Heritage Oil farmed in 70% interest and operatorship in October 2013. PPL 337 covers an area of 5,508 km2 on shore, and is situated in the Ramu Sub Basin close to Madang with access by road through the Usino-Bundi Highway (Madang-Lae) to the south and excellent logging roads running to the Sogeram River in the north which are adequate for rig transport vehicles. The Ramu Sub-Basin is a deep rhomboid trough bounded by the Gogol and the Ramu Markham Faults. Deposition occurred throughout the Miocene, Pliocene and Pleistocene. Late Pleistocene compression resulted in large fault bounded anticlines of which the Banam Anticline is the largest.
The Banam Anticline is a sizeable juvenile structure covered by thick tropical jungle with steep hills varying from 100 metres to 500 metres above sea level. It is covered by numerous gas seeps the analysis of which indicates a composition of 98% methane and 2% ethane. Outcrop and river gravel debris support the presence of the Mio-Pliocene cabonates. Samples taken from the Sogeram River have been collected for age dating. Seismic data in the north of the licence support the presence of large reef like anomalies. Exploration began north of PPL 337 in 1910 with identification of oil seeps but with 9 exploration and 12 shallow stratigraphic wells drilled to date remains under explored. A seismic program was undertaken by Coastal Papua New Guinea Exploration in 1982. Coastal drilled Tsumba 1 in 1984 and the seismic tie from Tsumba 1 was carried into the north of PPL 337. Modern seismic was acquired at Banam Anticline by Woodside Petroleum Limited (WPL) and OSH in 1997 when the PPL 337 was held by Ramu Niugini Limited . OSH and WPL withdrew and the licence became PPL 248 held by SriGas Limited and was later reissued to Kina as PPL 337 in 2009. In 2016, the evaluation of drilling results undertaken since completion of wellsite operations concluded that there is insufficient remaining prospectivity in the licence to warrant further exploration work and the licence was surrendered in 2016.
The strategic objective in relation to PPL 337 is to assess the possibility of defining a sizeable gas resource that may be economically developed either for the existing and growing domestic demand or transported and sold as LNG. Three play types are recognised in the PPL 337:
The Pleistocene sandstone, Banam Footwall target – Kwila 1
The Pliocene sandstone, Banam Hanging wall target
The Plio-Miocene reef targets – Raintree 1
A farmout effort is underway and the aim is to drill two wells-
1) To test the Banam Footwall target Kwila 1
2) To test the Plio-Miocene reef target – Raintree 1
Operators:
Heritage Oil: Operator with 70% interest
Kina Petroleum Limited: 30% interest