UPDATE: PNG's Oil Search Strikes Gas In Yemen

Date : 11/05/2009 @ 1:13AM
Source : Dow Jones News
Stock : Exxon Mobil Corp. (XOM)
Quote : 75.94  0.24 (0.32%) @ 2:23PM
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UPDATE: PNG's Oil Search Strikes Gas In Yemen

   (Adds analyst comment, gas flow rate) 
 
   By Ross Kelly 
   Of DOW JONES NEWSWIRES 
 

SYDNEY -(Dow Jones)- Oil Search Ltd. (OSH.AU) said Thursday that a well in Yemen located in a block it operates and in which it has a 60% stake has struck hydrocarbons, marking the company's first operated discovery outside Papua New Guinea.

Oil Search said the Tubb'a-1 well in Block 3, Yemen produced gas and condensate at daily rates of up to 9 million cubic feet and 450 barrels on a half-inch choke.

"Further work is underway to define the producing intervals and any fluid contacts," Oil Search said in a statement.

Other partners in the block are Turkey's Petoil and Yemen General Corp. for Oil and Gas, with stakes of 34% and 6%, respectively.

BBY energy analyst Scott Ashton described the find as "good news" with the initial production results "not too shabby at all".

He said the discovery could have a small positive effect on Australian Worldwide Exploration Ltd.'s (AWE.AU) acreage at Block 7 to the North, which contains several untested structures. AWE has a 19.25% interest in Block 7 and Oil Search is operator with a 34% stake.

-By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com

 
 

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