RH Petrogas refers to its announcement dated 31 July 2026 and provides an update on the results of the well testing programme for the Northwest Klagagi-1 ('NWK-1') well.
The NWK-1 well was drilled by the Company’s 82.65%-owned subsidiary, Petrogas (Basin) Ltd., in the area of the Kepala Burung Production Sharing Contract in Southwest Papua, Indonesia. The well was designed with dual development and exploration objectives, targeting the development potential of gas and condensate resources in the Upper Kais Formation, and evaluating deeper exploration potential in the Lower Kais Formation, the Oligocene-aged Sirga Formation and underlying Devonian-aged basement rocks.
The well testing programme comprised three drill stem tests ('DST'), with two conducted across separate intervals within the Upper Kais development zone, and one within the Lower Kais formation of the exploration zone. No hydrocarbon indications were observed in the deeper Sirga Formation or the underlying Devonian basement.
DST results from the two Upper Kais development intervals demonstrated strong hydrocarbon deliverability. During the multi-rate flow test of the lower interval, the well flowed approximately 1.6 to 2.7 MMSCFD(1) of gas and 40 to 109 BPD2 of oil, with water production ranging from approximately 90 to 363 BPD across the tested choke conditions. The test results indicate the presence of a gas cap with an underlying oil rim. The oil discovery provides an additional opportunity as it was considered to be a low likelihood to encounter oil in the original well prognosis. The oil-bearing interval has been isolated with a bridge plug to preserve the option for segregated production of the oil rim.
Similarly, the DST conducted in the upper gas-bearing interval of the Upper Kais zone demonstrated strong gas deliverability. During a sustained six-hour flow test at a 20/64-inch choke, the well flowed approximately 4.2 MMSCFD of gas and 192 BPD of condensate, with 20 BPD of water. A subsequent short-term step-up flow test achieved a higher gas rate of approximately 6.16 MMSCFD at a 26/64-inch choke.
While the Lower Kais interval exhibited hydrocarbon indications during drilling, including elevated mud-gas readings and oil shows, the DST conducted recovered only formation water. The deeper exploration zone of the NWK-1 well has since been plugged and abandoned. The costs associated with this zone, amounting to approximately US$4.5 million net to the Group's working interest, will be expensed in the current financial year ending 31 December 2026.
In summary, well testing results from the Upper Kais formation in the NWK-1 well demonstrated strong gas condensate deliverability and revealed an unexpected oil opportunity. The Group will undertake additional reservoir evaluation work to firm up the appropriate development strategy for the Northwest Klagagi Field.
Source: RH Petrogas
