In December 2009, we agreed on terms to divest our 15% non-operated interest in PPL 244 to an unrelated third party, an offshore block in the Gulf of Papua, in exchange for $2.1 million. The divestment was made to allow us to focus our efforts on our core assets, being the Elk and Antelope fields and exploration within PPL’s 236, 237 and 238. This divestment was approved by the State and finalized in October 2010.
Between the third quarter of 2009 and the first quarter of 2011, we completed the acquisition, processing and interpretation of 100 kilometres of seismic data from the Antelope structure and also completed two phases of two dimensional seismic data acquisition and processing over the former Bwata gas field, now understood to be and renamed as the Triceratops gas field (PPL 237), and the Wolverine prospect (PPL 238). The second phase of this program focused on further delineation of the Triceratops field and the Wolverine structure. At the end of 2010, the initial preparatory work on a seismic program for PPL 236 was advanced.
The PPL 237 phase three Bwata/Triceratops field seismic data acquisition program, which included four lines for a total of 50 kilometres, was acquired during April to August 2011. This program increased our total seismic data acquisition over the Bwata/Triceratops field to 140 kilometers in eleven lines. The objective of the program was to investigate the structure, seismic character and the aerial closure of the Triceratops gas field.
After the interpretation of the new seismic data, a review of the field was completed. Following that, the conclusion was reached that the Triceratops-1 well lies in the same zone, the same pool and the same field as the Bwata -1 well which was drilled over 40 years ago. As a result, the field was renamed the Triceratops field.
The PPL 236 phase 1 exploratory seismic data acquisition program, which included 70 kilometers with six dip lines transecting the Whale, Tuna, Barracuda, Wahoo, Mako and Shark prospects, was completed during the first quarter of 2011. Processing and interpretation of this first phase of seismic data has been completed, and the Wahoo/Mako leads (PPL 236) and the Tuna lead (PPL 236 and PPL 238) have been selected for follow up. Subsequently the Kwalaha seismic data acquisition program was activated consisting of 56 kilometres and seven dip lines. Work commenced on September 16, 2011 and was completed on December 20, 2011. The objective of the survey was to further delineate the Wahoo and Mako prospects and identify potential drilling locations. Processing and interpretation of the data is ongoing.
A third phase of seismic data acquisition, which consists of two dip orientated lines totaling 21 kilometres in length over the Tuna prospect, commenced on December 22, 2011. Line preparation is currently in progress.
Wells in both PPL 236 and PPL 238 are required to be drilled by March 2013 in order to meet our license commitments. Seismic data acquisition and interpretation programs have been designed with a view to determining, amongst other things, the proposed location of these wells. In 2011, we acquired an airborne magnetic, gravity and gamma ray survey over PPL 236, PPL 237 and PPL 238. A total of five (5) acquisition blocks were acquired with a combined a total of 1,428,876 line kilometres of airborne data. Data processing of this airborne data is currently undergoing final quality control.
The preparation of the Triceratops 2 well site was completed at the end of 2011 and the Triceratops 2 well was spudded on January 15, 2012. The Triceratops 2 well is an appraisal well to test the presence of hydrocarbons and determine whether a potential reefal carbonate reservoir exists in the Triceratops field.