Horizon Oil has spudded the Nama-1 exploration well in Papua New Guinea.
The company said the well had encountered a total of 77metres of the target Early Cretaceious Elevala and Toro Sandstones and Late Jurassic Kimu sandstones.
It said pressure measurements and sampling were taken in the key prospective zones, followed by the acquisition of side wall cores.
However a spokesman said the sands were “considerably thicker” than predicted and the reservoir properties are of poor quality and cannot be considered to be commercially productive.
He said: “Sidewall cores were run to determine the cause of reservoir degradation, which is thought to be diagenetic alteration, and the implications for possible lateral improvement.
“Interpretation of the well data, including the side wall cores, will be carried out to determine whether this is a localised effect, and if so, what potential remains in the broader Nama prospect.
“The well is currently being plugged and abandoned and it is anticipated that Parker Rig 226 will be released over the weekend.
“The Company intends to update shareholders on the results of the interpretation work when completed and the implications for future evaluation of the prospect.”
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