Wison Study Confirms Commercial Feasibility of Pandora LNG Project

Cott Oil and Gas

Papua New Guinea focused oil & gas development company Cott Oil and Gas said it has received the final LNG Concept Study for the Pandora Gas Field from Wison Offshore and Marine.

Cott was awarded a 40% interest in the Pandora gas Discovery (PRL 38) in December 2014 which contains a gross 2C Contingent Resource of 792 BCF gas (132 mmboe). Other participants in the Pandora Project (the PRL 38 Joint Venture) include Talisman Energy (25% and Operator), Kina Petroleum Limited (25%) and Santos Limited (10%).

Wison has presented two technically and commercially feasible concepts based on a lean gas composition for consideration:

• A 1mtpa offshore Floating Liquefied Natural Gas (FLNG) vessel incorporating gas clean up, liquefaction and storage for 170,000m3; and

• A Near Shore LNG vessel with 170,000m3 of storage and with sufficient topside space to accommodate up to 2.5 mtpa of liquefaction capacity.

The Pandora gas fields were discovered in 1988 and are located approximately 200km west of Port Moresby in the Gulf of Papua. The gas field comprises two discoveries in water depth of approximately 120m.

The Pandora A structure is a 290m high Miocene-aged reef build up that was discovered in 1988 and was tested at 57 mmscfd. The top of the gas column was encountered at 1,392m total vertical depth. The Pandora B structure is a 110m gas column that was drilled in 1992 and tested at 43 mmscfpd.

The gas field is mapped by 3D seismic which was acquired in 2009. Together, the two structures comprise a 2C Contingent Resource of 792 BCF.

Cott’s next steps will be to discuss the Concept Study with the PRL38 JV and with the PNG Department of Petroleum and Energy. Cott is also holding discussions with potential BOO parties that have the necessary
industry experience and track record in the LNG sector. The company expects to make an announcement in the near term regarding potential non-binding agreements in this regard,” the company said in a statement.

Press Release, June 2, 2014; Image: Cott Oil and Gas