Interoil Corp. has suspended the Wahoo-1 well in PPL474 in Papua New Guinea (PNG) after intersecting gas and higher-than-expected pressures that could compromise rig safety, the company said in a news release.
Significant concentrations of methane, ethane, propane and butane have been recorded and are believed to be entering the well bore from permeable zones above the predicted reservoir zone, which is yet to be penetrated. The gas is characteristic of thermogenic hydrocarbons, which are indicative of an active hydrocarbon-generating source rock, the release said.
The Wahoo-1 well was designed for high pressures based on data from other wells in the region but the pressures have exceeded by nearly 50% even those of InterOil’s Antelope discovery, 170 km (106 miles) to the northwest.
After a review by drilling and engineering teams and expert advisers, InterOil has concluded that drilling ahead would pose an unacceptable safety risk to people and the rig. The company has received approval from the PNG Department of Petroleum and Energy to suspend the well.
InterOil said it intends to resume operations as soon as practicable following a detailed review of well engineering, equipment and options, when the company is satisfied it is safe to proceed, and after the regulator has approved the company’s plans.
An option includes testing of the gas-bearing permeable zones encountered in the Orubadi mudstone.
Progress on Wahoo-1 has confirmed an effective seal in the Orubadi mudstone, as well as the presence of thermogenic hydrocarbons, both of which are key components to a working petroleum system. Further drilling is required to confirm the presence of a reservoir below the current total depth of the well before Wahoo can be considered a discovery.
Recommended Reading
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Mexico Pacific Working with Financial Advisers to Secure Saguaro LNG I FID
2024-10-23 - Mexico Pacific is working with MUFG, Santander and JP Morgan to arrange the financing needed to support FID and the anchor phase of Saguaro Energía LNG.
SLB Earnings Rise, But Weakened 4Q and 2025 Ahead Due to Oil Glut
2024-10-22 - SLB, like Liberty Energy, revised guidance lower for the coming months, analysts said, as oilfield service companies grapple with concerns over an oversupplied global oil market.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Artificial Lift Firm Flowco Seeks ~$2B Valuation with IPO
2025-01-07 - U.S. artificial lift services provider Flowco Holdings is planning an IPO that could value the company at about $2 billion, according to regulatory filings.