A SEISMIC data reprocessing program is planned for two permits in the southern foreland of the Papuan basin, operator Kina Petroleum has announced.

The company evaluated aerogravity and aeromagnetic data acquired in 2014 during the March quarter, identifying the Aiambak and Lake Murray East prospects in PPL 435 and the Oriomo High – with its Dalbert, Alligator, Sturt and Oriomo prospects in PPL 436 – as areas of interest.

Cott Oil & Gas, which holds a 50% non-operating stake in the permits, said data from the survey showed a dog leg in the Fly River fault system made the Aiambak prospect interesting.

An inversion of the Fly River fault system at the Lake Murray East prospect which uplifted late Jurassic and early Cretaceous rocks was of similar interest, with seismic reprocessing to be carried out – comprising a simple drape over a basement high, Cott said.

“We are currently integrating our interpretation of the gravity and seismic data sets in advance of undertaking reprocessing of legacy seismic data sets,” Kina said.

Kina said it had matured a significant inventory of large prospects and leads at the southern margin of the basin with good access along the Fly River.

“Oil generation in the south of the basin is supported by the presence of the Panakawa oil seep which was observed to be flowing at a rate of five barrels of oil per day at surface,” Kina said.

“The origin of this oil and the age of the source rocks will form part of a study being sponsored by Kina.”

Subject to the results of a forthcoming reprocessing program, Kina said it believed a multiwall drilling program using an Energy Drilling Australia rig would be justified, based on the existing dataset.

“Results obtained will influence future decisions on follow-up seismic acquisition,” Kina said.

The company added that it would seek to farm out PPLs 435 and 436 in 2017, ahead of a multi-well drilling program.

“The success of this program will depend on our capacity to deliver a commercially attractive portfolio of targets and the means to cost effectively test them.”