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Oil Search hits oil and gas in Iraq and Papua New Guinea

Published: 17:30 16 May 2013 AEST

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Oil Search (ASX: OSH) has intersected oil and gas at its exploration wells in Iraq and Papua New Guinea respectively.

In the Kurdistan Region of Iraq, wireline logs obtained over the company’s Taza-1ST2 well confirmed the presence of oil throughout the Euphrates Formation limestones.

Preliminary evaluation suggests the oil-bearing Euphrates limestones have good reservoir properties.

The forward program is to conduct a further drill stem test over the Euphrates Formation.

Oil Search has a 60% interest in the well.

Preliminary evaluation of logs acquired over its Flinders-1 well in Papua New Guinea have indicated the targeted Flinders sand package is more than 50 metres thick and has good reservoir properties.

Preliminary log analysis has identified an interval of gas in a thin, good quality sandstone at the top of the intersected Flinders package. Pressure data indicates a 5-10 metre gas column in the well.

Oil Search added there is potential for the gas-bearing interval to extend over the broader Flinders structure updip of the Flinders 1 well location and work is ongoing to evaluate this potential.

The presence of hydrocarbon-bearing sandstones at Flinders has de-risked two of the main uncertainties in the basin-floor fan sandstone play, confirming the broader potential of the Pliocene stratigraphic level in the Gulf of Papua.

The data gathered will allow the seismic data over the area to be calibrated for the first time with real rock data and will enable a thorough analysis of not only the Flinders discovery, but also other prospective locations in our licences.

Oil Search is moving to plug and abandon the well before moving the rig to drill the Hagana-1 well.

The company has a 40% interest in Flinders-1.

 

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