KINA Petroleum Ltd yesterday announced the spud of the Kwila-1 exploration well in petroleum prospecting licence (PPL) 337 near Madang.
Kwila-1 was operated by Heritage Oil Ltd under a farm-out agreement between Heritage and KPL, whereby Heritage would carry KPL through drilling and, if appropriate, testing of 2 wells.
The first of those wells, Raintree-1, has been drilled.
KPL would retain a 30 per cent participating interest in the licence on completion of drilling, and in event of a discovery would benefit from a carry through a seismic programme to appraise the field.
KPL managing director Richard Schroder said: “We look forward to the drilling at Kwila-1 which will test a trap with an associated seismic anomaly which Kina believes is within a sandstone body on the northern flank of the Banam Anticline, which remains the largest untested geological feature in Papua New Guinea.”