Pandora Gas Field (PRL38)

Cott was awarded a 40% interest in a new licence, PRL 38, in December 2013. The License comrpises nine graticular blocks covering approximately 765 km2 in the Gulf of Papua and includes the Pandora Gas Fields.

Pandora Gas Fields

The Pandora gas fields are located approximately 200km west of Port Moresby in the Gulf of Papua and comprise two discoveries and several prospects at a water depth of approximately 120m. The two principal structures have a 2C contingent resource of 792 bcf (approx 320 bcf net to Cott).

The Pandora A structure is a Miocene aged reef build up that was tested by the Pandora 1X well drilled by International Petroleum Corporation in 1988. The well encountered gas at 1,392 m TVD and a potential gas water contact at 1,669m TVD indicating a 278m gas column. The gas leg in the well was tested and flowed dry gas at 57 mmscfd.

The Pandora B structure was tested by the Pandora B-1X well in 1992 by IPC and was also a gas discovery. The top reservoir was encountered at 1,559 m TVD and the well drilled through the limestone reservoir interval with partial returns and zones of total losses. Interpretation of cased hole logs show a potential gas water contact at 1,669 m TVD and a gas column of approximately 110m. The gas leg was tested and flowed dry gas at 43.1 mmscfd.

Development Options

Cott has identified a number of commercialisation opportunities for the gas fields including stand-alone development, aggregation with Western Province gas and domestic gas supply. The gas fields are strategically located close to major regional and North Asian gas markets and the relative accessibility of the gas combined with its rapid deliverability make it a flexible source of high margin production. These will be evaluated by the joint venture as part of the license work commitments.

Offshore FLNG

At approximately 800 BCF, the Pandora gas field is of a sufficient size to justify development as a stand alone field using floating LNG (FLNG) technology. Small to Mid-scale FLNG solutions are being developed by several parties with expertise in LNG carriers, liquefction technology and FPSO owenship/operation with the aim of providing a turnkey FLNG solution on a tolling basis. Companies developing FLNG solutions include Exmar, Hoegh, SBM Offshore and  Excelerate Energy. The Pandora gas field could produce at a plateau of 200mmscfpd with a three-well development  - sufficient for a 1.2 MTPA liquefaction facility. These modest field development costs and the proximity to key domestic, regional and international markets indicate that LNG could be produced and delivered more cost effectively than many competing projects.

Aggregation with Western Province Gas - Near Shore LNG

Significant gas discoveries have been made in the foreland of the West Papuan Basin where Talisman Energy and Horizon Oil are aiming to aggregate sufficient gas to underpin a mid-scale LNG facility at the port of Daru. Two of the largest Japanese LNG importers, Mitsubishi Corporation and Osaka Gas, have respectively farmed into Talisman and Horizon’s Western Province licenses with a view to accelerating their development and diversifying their LNG supply options.

The volume of gas discovered in the Western Province and which could potentially be committed to an LNG facility is now approaching 4 TCF, sufficient for a 2 mtpa train. The license holders plan to initially develop licenses containing wet gas by removing the condensate and re-injecting gas back into the reservoir. Once these fields are producing, it expected that the gas will be monetised by delivering the gas by pipeline to a near shore LNG facility near the port of Daru.  This near shore location could create an aggregation point for the Pandora and onshore gas.