Dibiri & Hiri (PPL 356 & 357)

These licences are located in the prospective offshore segment of the Papuan Basin very close to the Pandora and Pasca gas discoveries. The PNG LNG pipeline route passes through the shallow water of PPL 356. PPL 357 is in deepwater where no exploration drilling has been undertaken.

PPL 356 & 357 are offshore in the Gulf of Papua. PPL 356 is in shallow, less than 200m of water while PPL 357 straddles the present day shelf break extending from 200m water depth into deepwater in excess of 1,000m.

The Geology of the offshore Papuan Gulf contrasts with the onshore and is dominated by proven gas-prone Tertiary Petroleum Systems in plays of Miocene age and younger. The Jurassic and Cretaceous age rocks that host the onshore petroleum systems were mostly eroded during a thermal uplift phase prior to opening of the Coral Sea Basin in latest Cretaceous to Palaeocene times.

PPL 356 lies between the Pasca and Uramu wet gas discoveries to the south and north respectively. The route for the PNG LNG gas pipeline, currently under construction, passes through the license. Further, the Pandora Dry Gas field is located in shallow water less than 5km west of PPL 357. These offshore gas fields accumulated in Miocene age carbonate reef reservoirs buried beneath the efficient regional Plio-Pleistocene age fine grained clastic top-seal.

Deepwater Miocene age sandstones provide an additional yet poorly evaluated exploration play. Oil Search Ltd has previously announced plans to drill one such target in the Flinders Prospect during 2012-13. Flinders is located in Oil Search Ltd PPL 244 just 25 km west of the South Pacific Resources Ltd PPL 357. The Flinders target reservoir as mapped by Oil Search trends north-west to south-east suggesting that similar sandstones may continue towards PPL357.

All offshore Papuan Gulf wells drilled to date and all petroleum discoveries have been made in the shallow water shelf region. Importantly no petroleum exploration wells have been drilled in the South Pacific Resources Ltd operated PPL 356 & 357. Furthermore no exploration wells have been drilled in deepwater such that the deepwater segment of the basin remains an exploration frontier.

CRS mapping and evaluation of the offshore Papuan Basin Tertiary reservoir and seal pairs has commenced. This work will include quantifying the presence and effectiveness of viable source rocks in the Gulf and the timing and migration of hydrocarbons from them. These are fundamental for quantifying petroleum prospectivity in PPL 356 and 357.

South Pacific Resources Ltd has successfully gathered and interpreted an impressive offshore open-file regional database during 2012 including all pertinent existing well and geochemical data.