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Bilip oil discovery flow test

Santos Ltd, as operator of PPL 190, has confirmed a flow rate of 2,000 barrels of oil per day from its first on-shore oil discovery in Papua New Guinea.The confirmation follows a successful flow test of the Bilip1 oil discovery in PPL 190 permit in the Southern Highlands of PNG.

A closed chamber drill stem test on was conducted in the Iagifu Sandstone reservoir over the interval 2,445 to 2,448 metres. During a 22 minute flow period, an estimated stock tank oil volume of 30.5 barrels was produced giving an estimated average flow rate of 2,000 stock tank barrels of oil per day.

Oil gravity is 46 API and estimated solution gas/oil ratio is 1200 standard cubic feet per stock tank barrels.

This is an encouraging result for Santos, said Santos Managing Director, Mr John Ellice-Flint.

We will now consider how best to proceed, including appraisal activity, near field oil exploration opportunities and appropriate production options for the discovery, he said.

The well will be cased and suspended as a future oil producer.

Bilip 1 is located 10 kilometres southeast of the SE Gobe oil field.

Interests in PPL 190 are:

Santos Group 31.278% (Operator)
Oil Search 31.278%
Murray Petroleum Co. Ltd 26.497%
Cue PNG Oil Company Pty. Ltd 10.947%