ExxonMobil said it encountered hydrocarbons after drilling the onshore P’nyang South-2 well located in the Western Province of Papua New Guinea.

“We are currently evaluating the well results and together with our co-venture partners will assess the P’nyang Field resource potential and development pathway,” said Liam Mallon, president of ExxonMobil Development Co. “We will work with the government of Papua New Guinea as we undertake this work.”

The well was safely drilled to 2,725 m (8,940 ft), reaching high-quality, hydrocarbon-bearing reservoirs in the Toro and Digimu sandstones, consistent with pre-drilling expectations. The well confirms the southeast extension of the field.

“When combined with our acquisition of InterOil Corp., the increase in assessed reserves at Hides in the existing PNG LNG project and our recent Muruk discovery, this adds to our rapidly growing inventory of low cost of supply natural gas in Papua New Guinea,” Mallon said. “We are continuing with our active onshore and offshore exploration program in an effort to provide additional resources to expand existing and planned development projects.”

Oil Search began drilling the P’nyang South-2 well on Oct. 22, 2017. The well is located in petroleum retention license 3, which covers 425 sq km.

ExxonMobil affiliates operate the license with a 49% interest in the block. Affiliates of Oil Search, drilling operator, have a 38.5% interest and JX Nippon has 12.5% interest.