The company has a small portfolio comprising of one PSC and one JSA with a total area of 17,543 km2 in a proven oil and gas-condensate basin.
Both blocks lie on the western flank of the proven Papuan Basin which has total discovered resources of some 800 million bbls oil and NGL’s and 28 Tcf of gas. The foreland part of this basin, adjacent to the TEX blocks, has discovered resources of 1.2 Tcf gas and 60 mmbbl condensate on the PNG side of the border with a further 50+mmbbl oil (Kau oil discovery) on the Indonesian side. Most offset analogue discoveries (Stanley, Ketu/Elevala/Tingu/Ubuntu) contain high CGR gas (20-60bbls/mmscf), although there is strong evidence of an oil charge in the basin, especially on the Indonesian side of the border, as evidenced by the Kau oil discovery (47oAPI) and the Bukit (35oAPI), Boha and Sesknut oil seeps.
The acreage is under-explored and has seen very little activity for over 25 years. Available wells are old (1950’s and 1980’s), often distant and, in the case of Ariope-1 (Shell, 1958) drilled on gravity highs delineating the edge of the prospective sequence. Seismic data are likewise old and sparse (>25km dip-line spacing) but the data content is good. Continental Oil also acquired historic, limited fold and offset seismic data in the Digul river system with one line bordering the northern edge of the Raksasa lead. Unfortunately, the original field tapes can no longer be located.
Nonetheless, regional studies incorporating well correlations, basin modeling and surface seep sampling strongly suggest that all the elements necessary for a substantive oil and gas play are present. In many ways, the western flank of the Papuan Basin is an analogue of the highly productive western flank of the Cooper/Eromanga Basin of South Australia.
The leads identified to date suggest considerable upside and TEX believes that the acreage has multi-Tcf and/or more than 100mmbbl oil/liquids potential. There are numerous follow-up features to target given success.
Asike river port can accommodate large, ocean-going vessels up to 6,000 DWT
Tanahmerah River Port, 80km upstream from Asike, can be reached by barges up to 500 DWT.
Both blocks have good operational access via river ports (Asike and Tanahmerah) which connect to public roads and logging tracks.
The blocks offer an early entry point with long tenure and high available equity. Work commitments are low with gravity/magnetics and 2D seismic only within the first 6 years of the PSC. First term minimum expenditure is costed at US$1.6mm for passive seismic but an investment in active seismic of between US$3 -$4 million would further delineate the existing leads and increase confidence in the project. Transform has spent some US$5 million since project inception.
There are no drilling commitments in the primary or secondary term providing considerable flexibility around the timing of expenditure. As well, the objectives are relatively shallow (1600-2100m) and subsurface drilling conditions benign, such that any exploration well can be drilled with a relatively light casing scheme and lightweight drilling rig. With the existing network of roads and tracks, it is highly likely that road access construction costs for drilling can be minimised.
SE Papua PSC
The SE Papua PSC contains the large “Raksasa” lead identified by its gravity signature and a 1970’s river seismic line which crosses its northern margin. This lead requires 2D seismic to de-risk and mature. The company is currently evaluating the most cost-efficient way to acquire an initial reconnaissance survey along the roads and tracks and is considering all options including passive seismic (lowest cost option) or active seismic using either dynamite (5+m shallow hole patterns augured in via tractor), accelerated weight drop or vibroseis (2x mini vibes) as a source. All these methods should provide effective resolution given the shallow depth to the objective, which is generally less than 2,000m and only 1600m in the case of “Raksasa”.
This initial survey would be complemented by a detail dynamite survey using node receivers. The SE Papua PSC is subject to Indonesian frontier terms. The leads display robust economics for both small- scale LNG (1.5 or 2Mtpa) and oil under conservative project cost and reservoir performance assumptions. Liquids export would be via the Digul River, which is navigable by ocean-going vessels at least as far as Asike.
East Papua JSA
The East Papua JSA area contains the smaller “Sedikit Raksasa” lead, which is defined by two regional seismic lines. This lead also requires further 2D seismic to de-risk and mature. The most effective way to do this would be to combine seismic operations with those to be undertaken in the SE Papua PSC. Once again, TEX believes that the most cost-efficient way to proceed initially is to acquire a reconnaissance survey along the roads and tracks. This would be followed by a more detailed infill survey.
The East Papua JSA will be subject to the new gross split terms (MR52/2017). Contractor take should match or exceed take under the old cost recovery terms.
