NO GAS was found at the second well in Kina Petroleum’s exploration campaign over PPL 337 in the North New Guinea basin, the company has announced.

After reaching a depth of 1,000 metres, wireline testing at the Kwila 1 exploration well failed to find movable gas in the number of deep water sandstones tested.

“There are no zones that warrant testing within the drilled section of the well but slightly higher gas saturations were noted within the deeper sands and may be the cause of the anomaly recognised on seismic data and previously thought to be a hydrocarbon effect,” Kina said

Kina managing director Richard Schroder said the Kwila 1 well was a valid test of the objectives the company had for the well.

“Kwila 1 and Raintree 1 were the first wells drilled in North New Guinea for over 22 years,” he said.

“Both wells drilled independent objectives and have advanced our knowledge of the petroleum play in this basin.”

The Raintree well was also found to be dry, with the well containing volcanic and igneous rock formations rather than the hydrocarbons the company thought it would access.

“The significant gas shows in Raintree 1 and prolific gas seeps on the northern flank of the Banam Anticline give us confidence that gas generation is taking place within the basin and there is a need to take what we have learned from these wells to advance the play concepts and high grade the remaining prospects in the licence.”

Both wells were operated by Heritage Oil under a farm-out agreement which saw Heritage carry Kina through the drilling and testing of the wells.

Kwila 1 was drilled by Ausdrill subsidiary Energy Drilling Australia (EDA), using its Schramm 200 rig, which Kina said had helped reduce drilling costs for shallow oil and gas targets in northern PNG and the foreland areas of the Papua basin.

“All operations were road supported with no helicopter involvement in the project,” he said.

“This achievement represents valuable in-country experience for EDA’s rig and crew, the use of which is being considered for our exploration portfolio elsewhere in PNG.

The $10 million rig was transported Papua New Guinea’s Madang province via barge from Brisbane in December, 2014 then transported via road to site in April.

EDA business development manager James Tuohy said he believed the company’s rigs could replace heli-portable rigs in Papua New Guinea.

“The modern EDA rig is faster and cheaper than those used in the past, reducing the costs of drilling for oil and gas targets in northern PNG and in the foreland areas of the Papuan basin,” he said.