Oil Search : Barikewa-3 well test successful

Oil Search's Barikewa-3 well test successful

PNG Media Release

9 August, 2018

Oil Search, as the Operator of Petroleum Retention Licence 9 (PRL 9), confirms that the Barikewa 3 appraisal well has successfully completed a drill stem test, producing gas from a 14 metre interval of the Toro Sandstone.

The well flowed gas to surface at 35 million standard cubic feet of gas per day (mmscf/d) on a 68/64" choke. Onsite analysis of the gas from the drill stem test and earlier wireline sampling confirms a dry gas with approximately 20% nitrogen and very low levels of other impurities, in line with pre-drill expectations.

The main flow period of this test was witnessed on Tuesday, 7 August 2018 by a high-level delegation including the Governor of Gulf Province, Chris Haiveta, Acting Secretary for the Department of Petroleum, Kepsey Puiye, the Acting Director of the Department of Petroleum, Bob Sari, along with other senior Department officials.

Governor Haiveta highlighted Oil Search's significant successful and ongoing investment in exploration and appraisal activities in the region and reaffirmed the support of his administration.

Barikewa 3 was spudded in late June and reached a total depth of 1,943 metres on 15 July 2018. The well successfully encountered gas in the target Toro and Hedinia Sandstone reservoirs, at depths in line with pre-drill expectations. A gas-water contact was intersected in the Hedinia Sandstone. Both reservoirs were well developed, with the Toro reservoir having better than expected thickness and quality. As planned, the well will now be plugged and abandoned.

The Barikewa 3 appraisal well has successfully achieved its appraisal objectives through the collection of modern data which will help constrain the field's resources and assist in establishing the optimal commercialisation pathway.

Participants in the well are Oil Search (PNG) Limited - 45.1%, Barracuda Limited - 40.1% and NPCP Oil Company Pty Limited - 14.9%.

As one of the biggest investors in PNG, Oil Search will continue to work closely with its joint venture partners, regulators, the PNG Government, landowners and communities to ensure long-term mutually beneficial outcomes for all.

End.

For further information, please contact:

Ruth Waram

Manager, PNG Communications Mobile: [phone]

Oil Search Limited

Incorporated in Papua New Guinea ARBN 055 079 868

Photos

(L-R) Marc Avai - Gulf Provincial Administrator, Kepsie Puiye - Acting Secretary Department of Petroleum,

Chris Haiveta - Gulf Governor, Bob Sari - Acting Director Petroleum, Joseph Kia Inspector Drilling, Department of Petroleum. Back Row: Nicholas Mclean (New Colombo Plan Intern with Oil Search) Cornelius

Soagai - Oil Search Government Affairs Lead and Dr Shane Schofield - Oil Search General Manager, PNG Exploration Operations & LNG at the Barikewa 3 well site shortly after the successful drill stem test.

Chris Haiveta, Gulf Governor and the delegation being welcomed by the community at Barikewa.

Barikewa 3 well site in Gulf Province.