Horizon Oil reports on Papua New Guinea activities

Horizon Oil, has obtained key results from its production test of the Stanley-1 well in PRL 4, Western Province, Papua New Guinea, where the company holds a 100% interest. The company started operations on 20 June 2008, utilising EasternWell rig 4.

The well flowed at rates up to 25 million cubic feet of gas per day (mmcfd) on initial clean-up flow.

The well was subsequently turned to a test separator unit and stable production rates of gas at 9.3 mmcfd and associated condensate at a yield of 35 barrels / million cubic feet of gas, with no formation water, were recorded.

These rates were limited by the capacity of the test unit. Preliminary interpretation of the results indicates reservoir performance and condensate yield at the upper end of expectations.

The current operation is obtaining high pressure fluid samples, which will be used to design processing facilities. After that a series of flow tests and shut-ins will be conducted over a 6 day period to help determine reservoir continuity.