PREPARATIONS are underway to drill a well in the Kalangar prospect on PPL 339, located south and east of the Elk-Antelope prospect in the eastern Papuan basin, later this year.

Oil Search farmed into the prospect in the September quarter, taking a 70 per cent stake and operatorship from Kina Petroleum at the time.

In December Oil Search farmed-out half of its portion, a 35% stake, to Total, while retaining operatorship of the licence.

In its December quarter announcement, Oil Search said it had high-graded a prospective trend in the licence and delineated the Kalangar structure as its preferred prospect.

This followed reprocessing of seismic data and high resolution gravity and magnetic studies over the licence area, which covers 801,900 hectares.

“Kalangar is a multi-trillion cubic feet potential tertiary carbonate prospect that, if successful, will open up an important and new prospective trend in the Gulf region,” Oil Search said.

“Preparations are now underway to drill the Kalangar 1 well, which is scheduled to take place during the dry weather window in late 2016/early 2017, as part of the ‘Smaller Rig’ drilling campaign.”

In its December quarter announcement, Kina Petroleum said the depth of the potential carbonate reservoir target at Kalangar was subject to further technical discussions in order to define the best location for the well.

Kina added that the economics of the Kalangar prospect were under review in light of the prevailing low oil prices.