Palmer Peroleum Pty Ltd holds a 100% interest in the offshore exploration licences PPL 379, PPL 380 and PPL 381. PPL 379, PPL 380 and PPL 381 are located offshore at the northern end of the Gulf of Papua, immediately west of the capital, Port Moresby.
Regional studies suggest six play types in the area. Mapping in the licences has focused on three main plays: the Miocene - Pliocene Fold Belt Play, the Miocene – Pliocene Carbonate / Reef Play and the Breakup four-way dip closure play. The study effort to date has mainly concentrated on the Fold Belt Play and the Carbonate / Reef Play.
The three licences contain leads that may be capable of containing large volumes of hydrocarbons. A large number of leads have been identified, nine in PPL 379, nine in PPL 380 and ten in PPL 381. The leads are mapped on the regional to semi detailed 2D seismic grid.
The leads are high risk frontier exploration opportunities that require substantial additional technical work to mature them to prospect status prior to being considered for drilling in 2010.
The critical risks relate to the age, the quality and the thickness of the reservoirs, the vertical seal integrity of the shallower potential reservoirs; and there being adequate source and time available to fill the traps.
Prospective probabilistic resource volumetrics have been prepared for six leads in PPL 381 based on the fold belt play. In the event a single pay zone is assumed in each lead in PPL 381 then the cumulative unrisked mean in place prospective resource volume for the largest eight leads is approximately 14 Tcf of gas. Assuming multiple pay zones, then the cumulative unrisked mean in place prospective resource volume for the largest eight leads in PPL 381 is approximately 22 Tcf of gas. Prospective probabilistic resource volumetrics for leads in PPL 379 and PPL 381 have not been assessed in the course of this study.
Palmer Petroleum proposes to acquire a 3D seismic programme over the key leads in each of the three licences. The proposed seismic programme would mature existing leads to drillable prospect status and also identify additional leads and prospects.