PPL 260
PPL 260 covers approximately 1.6 million acres of mountainous terrain and is located in the structurally complex Papuan Fold Belt. There is significant potential for large petroleum structures containing hydrocarbon gas and condensate in PPL 260 and there is an existing oil pipeline 45 km south which transports liquids to the Kumol tanker and loading facility.
Eaglewood initially held 100 percent of PPL 260. In 2009, Eaglewood entered into a farm-out agreement with Oil Search (PNG) Limited (“OSPNG”) for 70 percent of the license. OSPNG subsequently farmed-out 20 percent of their interest to Nippon Oil. The current holdings in PPL 260 are Eaglewood 30 percent, OSPNG 50 percent and Nippon Oil 20 percent. OSPNG is the operator.
In June 2009, a seismic acquisition program was conducted over PPL 260. The Korka-1 well location, which spud in April 2010, was selected after the seismic program was evaluated, The well targeted the Toro and Giero sandstones The Korka-1 well was drilled to a total depth of 3,340 metres Although elevated gas readings and oil shows were observed within the Toro sandstone, pressure tests and fluid samples confirmed the presence of only residual hydrocarbons and water. The Korka-1 well has been plugged and abandoned.