RESULTS from the Stanley 5 and 3 development wells at PR4 in Papua New Guinea have been labelled “exceptional” in Horizon Oil’s September quarter activities report.

The company reported development drilling activities at the PRL 4 Stanley field were completed in September.

“The two production wells for the Stanley gas-condensate project are now completed, ready for production and, through testing, have demonstrated the capacity to produce well in excess of the design capacity of the Stanley gas plant,” the company said.

“With completion of the Stanley-3 well, all development drilling activities will have been completed in respect of the Stanley project.”

The Stanley-5 well spudded in June and was drilled to a depth of 3,405 metres, with the observed quality and size of the objective Toro and Kimu reservoirs described by the company as “better than expected”.

The reservoirs had a combined gross reservoir column of about 100 metres and net pay of about 96 metres.

Following a production test at the Kimu and Toro zones the Stanley-5 well flowed at about 68 million cubic feet of gas per day (mmcfd), with associated condensate, on a 122/64 inch choke at a wellhead pressure of 3,233 psi.

Horizon said data from the site showed the results exceeded pre-drill results and that seen at Stanley-2

Following the completion of Stanley-5 the company skidded Parker Rig 226 to commence drilling at the Stanley-3 injection well, which spudded in early September.

“The well was drilled to a measured total depth of 3,501 metres and achieved its objectives of confirming a gas column in the Toro formation with a gas-water contact at the base of the reservoir,” the company said.

“The well has been completed as a gas reinjection well, as planned.”

Horizon said the project was forecast to achieve initial production of about 4,000 barrels per day of condensate when the field commences production.

Horizon Oil has managed the drilling of the Stanley 5 and 3 development wells on behalf of the joint venture with Talisman Niugini, Osaka Gas and Mitsubishi.

In other PNG-related news for Horizon, the company announced significant progress had been made in constructing the rig site at the Nama-1 well at PPL 259, which is expected to spud in early December.

PPL 259 is located near the Stanley field, with the company reporting it has similar potential as the latter, which is certified at 399 billion cubic feet (bcf) and 13 million barrels of oil (mmbbl).

The company also announced significant production achievements in China, where it accomplished six million barrels of cumulative oil production and the drilling of two exploration discovery wells.

Horizon’s production for the September quarter was 312,316 barrels, with yearly production to the third quarter at 1,074,744 million barrels.

The company’s production revenue for the quarter was US$29.64 million, with revenue for the year at US$103 million.

Horizon had US$76.1 million cash on hand at the end of the September quarter.