Australian operator Larus Energy is planning a significant exploration campaign offshore Papua New Guinea, centered on the high-impact Nanamarope-1 well scheduled for 2027. The company is seeking to raise US$100 million to self-fund the operation, aiming to maximize future value by retaining full equity in its license.

The Nanamarope Prospect

The Nanamarope-1 exploration well will be drilled on Petroleum Prospecting Licence (PPL) 579. It targets a giant standalone oil prospect defined by a clear four-way dip closed structure imaged on modern 3D seismic. The prospect has multiple stacked reservoir targets, with a prospective resource of 1.008 billion barrels in the primary reservoir and 1.903 billion barrels overall. Evidence of an active petroleum system, including direct hydrocarbon indicators and confirmed thermogenic hydrocarbons from offshore sampling, supports the prospect's potential.

Strategic and Financial Planning

Larus has decided to proceed alone on the Nanamarope wildcat, deviating from an initial plan to secure a farm-in partner. The company believes taking all the risk upfront will allow it to strike a better deal if the well is successful. The US$100 million funding round is primarily allocated for the well: US$25 million for the rig, US$45 million for drilling, US$5 million for well planning and logistics, and US$3.7 million for long-lead items. The current timetable envisions signing a drilling contract in Q3 2024 and spudding the well in Q1 2027.

Broader Exploration Context and Synergies

The exploration activities in the region have the potential to open a new offshore play for Papua New Guinea. The Mailu-1 wildcat on the adjacent PPL 576, operated by TotalEnergies, will be the country's first-ever deepwater well, targeting a giant Tertiary carbonate oil prospect in 2000 metres of water. Both Nanamarope and Mailu are considered high-impact wells by exploration consultants. Larus also operates the adjacent PPL 695, where TotalEnergies' Mailu prospect extends into the northeast corner. A discovery at Nanamarope would derisk the basin and increase the value of PPL 695, which already has identified leads offering appraisal and farmout potential.

Licensing and Location

Larus currently holds 100% operated equity in PPL 579, located approximately 80 kilometres from Port Moresby and existing petroleum infrastructure. The company's work on PPL 695, south of PPL 579, is covered by a modest commitment of US$1.1 million through August 2027. Regional seismic data was enhanced by a multi-client 3D survey acquired in 2023 over the prospective Aure Moresby fold and thrust belt and Torres sub-basin.