Twinza Announces Major Resource Upgrade
Published on 29th March, 2023
Twinza is pleased to announce that it has completed two new major reservoir assessments for the Pasca A field:
- An updated independent assessment of the Pasca A hydrocarbon resources has confirmed a total resource increase of 35%, and
- An independent assessment validates the potential for sequestration of up to 200 million tonnes of carbon dioxide in the Pasca A field.
The studies were completed by Twinza’s technical team and independent assessments have been prepared by Gaffney, Cline & Associates (“GaffneyCline”).
Pasca A Resource Assessment
- The updated GaffneyCline resource assessment of the reservoir confirms a 35% increase in total resource size relative to the prior assessment prepared in 2018.
- Updated Contingent Resources (best estimate basis) of Pasca A are 167 million BOEs including 464 Bcf of LNG feed gas, 47 million bbls of condensate and 43 million bbls of LPG
- The resource size corresponds to 1 Tcf of LNG feed gas on an energy equivalent basis1.
- The results of the assessment are consistent with the Pasca A Field Development Plan included in Twinza’s Petroleum Development License (“PDL”) application.
- The Contingent Resources will likely be classified as Reserves after award of the PDL.
- The updated resources significantly increase the value of the PNG State’s revenue from the Pasca A project through the development life of the project for the benefit of the people of Papua New Guinea.
Carbon Sequestration Assessment
- GaffneyCline validated the subsurface feasibility and quantified carbon dioxide (“CO2”) sequestration in the Pasca A field and aquifer.
- The study validated a storable quantity of more than 50 million tonnes of CO2 in the gas cap section of the reservoir and an additional potential of more than 150 million tonnes in the aquifer directly below the gas water contact.
- GaffneyCline validated that CO2 injection is technically feasible concurrently with gas production.
Twinza Oil Limited and Twinza Oil (PNG) Limited (“Twinza”) is pleased to announce that it has completed both an updated, independent assessment of the Pasca A field’s hydrocarbon resources and an independent assessment of the potential sequestration of large volumes of CO2 in the reservoir.
The updated resource assessment confirms a 35% increase in total resources of the Pasca A reservoir compared to the last assessment prepared in 2018. This increase reflects improved reservoir characteristics confirmed by a combination of advanced core analysis, drilling data, log interpretation, correlation with reprocessed 3D seismic and completion of a comprehensive dynamic production model which brought all this additional information together. The updated assessment more closely reflects Twinza’s own internal view and further validates the Company’s Pasca A Petroleum Development License (“PDL”) application and project development concept. The breakdown of components is detailed in Table 1 below.
GaffneyCline has assessed the resource class as “Contingent Resources” as the Pasca A project is still awaiting regulatory approvals. The “2C Contingent Resources” will likely be reclassified as “2P Reserves” in accordance with the Petroleum Resource Management System after award of the PDL.
The Carbon Sequestration study has resulted from the Company’s technical work on the concept, which was initiated in response to the evolving expectations of energy investors. Although Twinza has no immediate plans to utilise the capability, it represents an opportunity to dispose of emissions from proximate regional projects or to potentially work towards a world scale Carbon Capture and Storage project at the Pasca field location.
Commenting on the announcement, Executive Chairman Stephen Quantrill said:
“The upgraded assessments are a credit to our CEO Robert Gard and our whole Twinza technical team who have used the delays in securing regulatory approvals to add value to the project for the benefit of all stakeholders including the people of Papua New Guinea.
Once operational, the project will generate more than K500 million per year to the PNG State, generate around 500 permanent jobs and bring significant US$ into the PNG economy. Twinza has complied with all laws, regulations and information requests since entering PNG in 2011 and stands ready to proceed with Pasca Phase 1 FEED as soon as the outstanding regulatory approvals are granted.”
The carbon sequestration opportunity is one which offers the potential for the Pasca field to be carbon neutral, and in fact carbon negative over its full life cycle. Although no carbon dioxide source for sequestration at Pasca has yet been identified, the quantifying and certifying of this opportunity provides the foundation information required for the potential development of the Pasca reservoir for carbon sequestration, in support of the world’s objectives for 2050 net emission targets.”
1 “Best estimate” is the Petroleum Resources Management System (PRMS) term for the most realistic assessment of recoverable quantities if only a single result were reported.
2 BOE - barrels of oil equivalent - is the quantity of hydrocarbons expressed in terms of the volume of oil which would contain an equivalent amount of energy. Twinza has used 1 BOE = 6000 scf = 1 bbl liquids.
Pasca Development Project Overview