Okay elevated gas reading in the Toro can be one of two things.
1. The elevated gas readings are residual. Leftover hydrocarbons after migration to the surface. Global Petroleum experienced this after Avivi-1, where the seal was breached and the oil and gas seeped to surface. Panakawa could very much be in the same position.
2. We have a gas reserovir in the Toro. Remember that the contact sequence is gas-oil-water so oil could potentially be hosted in the lower formations of the Imburu sands (Dimigu, Iagifua and Hedina) or the Koi-Lange.
Koi-Lang and Barikewa mudstone are the jurrasic source rocks in the papuan basin. When kerogens are heated we have the carbon chains cracking, with mehtane (CH4) being the smallest in the chain. It is the lighest hydrocarbon and requires the most heat to be sperated and cracked. Thus we find it above the heavier oil sequences. Hence the common "gas cap over oil leg" statements.
It is far too early to know if we have a discovery. If you understand the contact sequence then you would be aware that the only thing that has changed is that their volumetric analysis in regards to oil has been scrapped.
If the Toro was still as thick as first interpreted, with the entire interval being gas bearing, we could have a multi-TCF gas play on our hands. Talisman could already be licking their lips.
NGE Price at posting:
16.0¢ Sentiment: None Disclosure: Held
