Looks like OSH and Co. have another failure on their hands....

Looks like OSH and Co. have another failure on their hands. US$40-50 million down the tubes and its on to the next one for them. Once again I will say the oil and gas is there, but the question of commerciality is the big one. OSH last 2 wells geological successes, but clearly not commercial successes. I would assume Nippon would not be impressed with the progress. They linked up with OSH in 2009 by farming into 4 exploration permits and I believe they would be very disappointed with 2 failed exploration wells.

After 2 dismal wells in PNG, Panakawa is ready to take centre stage in PNG.
There will really be all eyes on this now.

Oil Search: Korka-1 Find Disappointing; Well To Be Abandoned
Publi le 01 Juin 2010 Copyright 2010 Dowjones
- SYDNEY -(Dow Jones)- Oil Search Ltd. (OSH.AU) said Tuesday that an evaluation of the Korka-1 discovery in Papau New Guinea has presented disappointing results and the well will be plugged and abandoned.
Oil Search recently said it gleaned elevated gas readings and oil shows at the well but further testing has indicated the presence of residual hydrocarbons and water. This indicates that whatever oil and gas was there has since leaked away.

"So it's basically a dry well," an Oil Search spokeswoman said.
"Obviously the result is disappointing but there are a number of wells that we are drilling," she said, noting that the higher-risk well had a relatively low probability of success.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [email protected]