The long saga of the gas wells that never quite were

JOHN FOWKE

WHAT HARRY TOPHAM AND PHIL FITZPATRICK saw of those Papuan gas shows is true and their comments [see Recent Comments] do sum up the situation.  Others who are technically-qualified and experienced, and lay observers like me, have previously attested to the same thing.

I was present in the area [where InterOil has claimed a major find] during the heyday of Australasian Petroleum Corp and its operations at Puri and elsewhere.

The gas-flow at these holes was not large in quantity and was forced up by water-pressure within the porous strata it’s trapped in. If tapped, it is likely to run out quickly leaving a lot of angry investors with a lot of artesian water.

This is why APC capped numerous holes in the headwaters of the Era, Kikori and Turama/Omati rivers in the late 'fifties thru to around 1961.

I've travelled to the headwaters of both the Purari and the Era rivers, as well as journeyed up the Turama and Omati, and have observed not only one or two of the sealed-off drill sites, but also observed exposed coal-seams in the banks of the upper Era and oily seepages back down in the delta of the same river. (I even dismantled a steel-framed building at the abandoned Omati site for re-erection at Kikori in 1958.)

All this has been well and truly looked at, going as far back as a major exploratory search across the mid-to-upper areas of the Purari, Era and Kikori rivers by Staniforth-Smith in 1908.

This was soon followed by the likes of Papuan Apinaipi, Oil Search and the post-World War II BP/Vacuum (Mobil) - backed Australasian Petroleum Corp whose Catalina service - run by the alleged CIA subsidiary, Worldwide Airways - used to land three times a week at Kikori. One Catalina still rests there, holed and sunk on a sandbank below the station.

The old prospectors in the late 19th century used to say "there's a lot of gold in New Guinea but there's a bloody big lot of New Guinea mixed with it."

The same probably applies to oil and gas. Philips Petroleum searched and set sub-sea seismic charges off all across the Papuan Gulf in the early 'sixties, with shore-stations on Goaribari and Kiwai Islands, and others are now showing interest in areas in the Gulf and off Cape York, I hear.

But they are concerned with gas, not oil. Many more episodes to follow in this story, one thinks.

Comments

[Ugie Ame]

I totally agree with the comments said about Kura River on the oil/petroleum disposal. This is all true and I come from Irupi village and work with Telikom PNG Ltd.

I believe what is happening on the land and the consequences my people are facing. The truth of what has been laid has been unfolded.

I would very much appreciate your help in whatever way you can to assist my people in their suffering.

[Harry Topham]

In most countries having strong governance oversights over capital raising by companies, the appropriate legislation ensures that such companies must produce a prospectus to provide transparency and allow those prospective investors some protection from schemes, which are simply scams.

In investment schemes involving mineral resources most prospectus contain detailed geological reports, engineering feasibility studies and price forecasting.

So in this instance involving this particular company why the secrecy; if bone fide just simply release the background information required so then prospective buyers or stakeholders can at least minimise their risk to caveat emptor issues.

To not comply simply creates an atmosphere of distrust as many might feel that the minimal date available is nothing more than that old trick of peppering the mine.

[David Durst]

I have heard of these "caps" and am very interested to find out if there is any official documentation of "caps" being put in the Kura River which leads into a village called Irupi in the Western Province 10 to 20km west of Daru.

Villagers have told me that fish and other aquatic animals have mysteriously died (mass mortalities) and that vegitation is also affected. Also bad smells coming up through the ground.

Is that gas/oil/petrol rising through the ground and aquifers. I'm not a geologist and would like some expert opinion, so if you are able to help please do.

My aunty as a girl walked in blue water that burned her skin (perhaps a petroleum of sorts). Would someone be able to tell me what is going on here?

[Michael Lorenz]

Shell doesn't appear to be overly interested in participating in this investment opportunity. This was in PNGIndustryNews a couple of days ago.

... “The government of PNG has identified Shell as the preferred partner with the government energy company, Petromin, for the potential development of future LNG projects because of Shell’s capability and PNG’s desire to bring such capacity into the country,” A Shell spokesperson told PNGIndustryNews.net yesterday.

“As a result of our discussions with both the PNG government and Petromin we have looked at a number of potential opportunities in PNG, including the InterOil project.

“We have had discussions from time to time with InterOil about their assets. Any future Shell participation in InterOil’s assets would require the opportunity to meet specific investment criteria and compete with other LNG options.” ...
http://www.pngindustrynews.net/storyview.asp?storyid=9591783&sectionsource=s0

The PNG Govt. needs to tread very carefully here. An independent assessment of probable and proven reserves is the minimum requirement before any investment decisions are made.

There are numerous red flags that suggest further investigation is indicated, e.g. you can't prove up an elephant field with a couple of drill holes, claimed flow rates (705 MM scfd including 11,200 bbl per day of condensate through a 4" choke for Antelope-2) that likely defy the laws of physics.*

Please PNG, be careful. :-)

* ... The most prolific gas wells in the Carnarvon Basin offshore Western Australian can produce a maximum of 300 Mm scfd as they are restricted from flowing at greater rates by the diameter of the (7") production tubing. ...
http://articles.businessinsider.com/2010-04-14/green_sheet/30010768_1_interoil-corporation-oil-and-gas-activities-flow-tests

[Oilfield Hand [name not supplied]]

InterOil has actually hit a huge gas reservoir in this lease and is developing it in a very cost-effective and smart manner. People can doubt and speculate but the results speak for themselves.

You cannot compare a dataset used in the 1950's and 1960's to make sound investment decisions on an area such at the Papuan Foreland and Foldbelt.

The technology was not there back then for today's level of comprehensive exploration and secondly the geology of the area is quite heterogenous and totally different even as close as 3 kms.

An aquifer or mere artesian water drive mechanism alone cannot flow gas at 700 tcf/day. Lets be patient and not so quick to judge InterOil.

There is talk that Shell is coming in thru the back door to Minister for a piece of the InterOil pie. I wonder why? Obviously is its because they realise the potential which has been proven.

Food for thought.