Australia’s Rawson Resources has been awarded the petroleum prospecting license (PPL) 560 in the gas-rich Cape Vogel basin, offshore Papua New Guinea (PNG).
PPL 560 is the third license awarded to Rawson in PNG, having already secured PPL 549 and PPL 391 in the onshore Aitape basin.
Rawson said this represents a major milestone in the company’s strategy of building a strong and diverse exploration portfolio in PNG.
The firm holds 60% interest in PPL 560. The license covers 4680sq km and has been awarded on a six-year term, with a further six-year renewal period. The first well commitment in the license is due in 2020).
Rawson believes PPL 560 ranks extremely well against other frontier exploration projects with the very large size of the potential resource and its proximity to Asian LNG markets.
An independent resource assessment by Fekete Associates puts the total mean P50 resource potential at 6.5 Tcf of gas. The Buna prospect is potentially the largest undrilled prospect in PNG since the Elk-Antelope discovery.
The coastal, shallow water location of the licensee allows for low cost drilling of the major Buna structure utilizing a jack-up rig, with a large discovery capable of supporting a standalone LNG development.
Early seismic data in the area suggested the presence of a gas cap over the Buna structure. Recent 2D seismic data appear to confirm anomalies consistent with a gas-bearing reservoir at Buna as well as firming up additional prospects.
Image: Map of PPL 560 permit area / Rawson
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