New Guinea Energy (ASX: NGE) has reported that Australian Drilling Services’ Rig #6 commenced drilling of the Panakawa-1 exploration well on 25 June with the well at a depth of 37 metres at 0700 PNG time.
The Panakawa Prospect is an oil prospect located in PPL 267 in Papua New Guinea and was initially identified as a lead from the Yalis Phase I Seizmic Survey completed in 2006, and further delineated by the Yalis Phase II Seizmic Survey (Q3 2008).
The Prospect underlies the Panakawa Oil Seep which has a surface measured flow rate of 5 barrels of oil per day of 35°API oil and is ideally located less than one kilometre from the Panakawa Logging and Veneer Plant wharf currently used to export products direct to international markets via barges.
The Panakawa-1 well is targeting the Lower Cretaceous Toro Formation sandstone and several secondary reservoirs. Proposed total depth of the well is 2323 metres in basement.
The company expects the well to require approximately 30 days to drill.
New Guinea Energy is the sole participant in the Panakawa-1 well as the holder of a 100 percent interest in PPL 267.