Bosavi about to spud in PNG. HZN has a 50% working interest (I...

Bosavi about to spud in PNG. HZN has a 50% working interest (I expect that they may try to farm down somewhat during the drilling) and I think that the operator (with the other 50%) is Santos.

Announcement says estimated mean potential of 150 million barrels and upside to over 1000 million barrels.

Is high risk, though, like most PNG drilling (so do your due diligence well).

Two other wells currently drilling (Tunisia - targeting gas and New Zealand - targeting oil)

I hold.

Cheers
OG


part of HZN announcement 15 January 02 follows:
-------------------------------------

PNG - PPL 206; BOSAVI-1 WELL

Preparations are underway to drill Bosavi-1. The helirig, Century 21,
has been moved to the location and is 85% rigged up. It is
anticipated that the Bosavi-1 will commence drilling early next week.

BACKGROUND

Foreland and frontal thrust (foothill) terrains around the world have
delivered billions of barrels of oil, exceeding the volumes found in
adjacent foldbelts. Examples include: Alaskan North Slope, Colombian
Llanos, Venezuela, Canada, and Iran/Iraq. The PNG foothill belt is
geologically analogous to these basins but has not yet delivered a
commercial discovery despite the existence of a proven hydrocarbon
system. Historically, seismic and field mapping have been ineffective
in the area but new techniques, recently applied, have yielded good
results and a new phase of exploration is about to commence.

The permit is highly prospective, with PPL 206 situated on likely
hydrocarbon migration routes from the north. Several wells in and
around the permits have contained good oil and gas shows. However,
many of the wells were drilled off-structure and the hydrocarbon
potential of the area is relatively untested. Bosavi-1 will be
drilling a very large structural closure based on new, improved
seismic located in a favourable position to capture hydrocarbons. The
productive Toro, Hedinia and Iagifu reservoirs of the foldbelt fields
extend over the Bosavi feature and sands within the Koi Iange are
secondary targets. The Bosavi prospect has a mean potential of 150
million barrels and upside to over 1000 million barrels.

Horizon has a 50% working interest in PPL206.