Rawson Resources was awarded the petroleum prospecting license (PPL) 560 in the gas-rich Cape Vogel basin, offshore Papua New Guinea (PNG).
The Australian firm holds 60% interest in PPL 560, which covers 4680sq km. Rawson's deal includes a six-year term, with a further six-year renewal period, with the first well commitment in the license due in 2020.
Rawson believes PPL 560 ranks extremely well against other frontier exploration projects with the very large size of the potential resource and its proximity to Asian LNG markets.
An independent resource assessment by Fekete Associates puts the total mean P50 resource potential at 6.5 Tcf of gas. The Buna prospect is potentially the largest undrilled prospect in PNG since the Elk-Antelope discovery.
The coastal, shallow water location of the licensee allows for low cost drilling of the major Buna structure utilizing a jack-up rig, with a large discovery capable of supporting a standalone LNG development.
Early seismic data in the area suggested the presence of a gas cap over the Buna structure. Recent 2D seismic data appear to confirm anomalies consistent with a gas-bearing reservoir at Buna as well as firming up additional prospects.
PPL 560 is the third license awarded to Rawson in PNG, having already secured PPL 549 and PPL 391 in the onshore Aitape basin.
Image: Map of PPL 560 permit area / Rawson
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