New York-listed InterOil is wasting little time expediting what it claims will be the lowest cost new-build LNG project globally, having already begun flow testing at the Elk-Antelope gas field in Papua New Guinea as part of the field appraisal program.

PNG Prime Minister Peter O’Neill and Department of Petroleum and Energy Minister Nixon Duban visited the Antelope-5 well site yesterday in the Gulf Province to see the operation and to be briefed on the Elk-Antelope LNG project, a joint venture between InterOil, Total and Oil Search.

InterOil chief executive Michael Hession said pressure gauges are planned to be placed in the field to monitor the pressure response during an extended test of Antelope-5.

“Antelope-5 has the best reservoir thickness, quality and fracture density of all wells on the field, which signifies a world-class reservoir,” he said.

“By flowing the well under different conditions, we will be able to calculate maximum potential flow rates and better understand reservoir size, productivity and connectivity.”

Hession said data from the testing would help the joint venture to optimise design of the LNG plant and associated infrastructure.

The Elk/Antelope JV is currently finalising plans for field testing, including drilling another well, Antelope-6, to define the eastern flank of the reservoir.

Oil Search managing director Peter Botten said the testing, together with the drilling of Antelope 6, would help delineate the size, reservoir connectivity and productivity of the Elk/Antelope gas field.

“Results to date from the Antelope 4 appraisal well, which is presently suspended, and Antelope 5 have been largely in line with Oil Search’s pre-drill expectations,” he said.

“Both wells have provided significant new information that will assist in the evaluation of the field, which we believe has the potential to underpin a commercially attractive new LNG development.”

The Total-led Elk-Antelope venture remains on track to select a preferred development concept by mid-year, which will be followed by early development works in 2016.

Numerous development options, including a stand alone LNG project, are on the cards for the project.

First gas could be achieved by 2021-2022.

Shares in Oil Search were down 0.5 per cent to $8.39.

Lauren Barrett can be reached at lbarrett@hartenergy.com