- Although RH PetroGas (RHP, SGX:T13)’s 2023/24 drilling programme yielded only one successful well out of four, this was in line with historical global exploration success rates. Excluding exploration write-offs, RHP’s 2023 net profit would have beaten our forecast.
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One successful well out of four - an in-line result.
- In mid-Mar 24, RH PetroGas announced that the Piarawi-1 well, located in its Salawati Production Sharing Contract (PSC) and the fourth and final well of its 2023/24 drilling programme, found good quality 42º API oil within a tight carbonate reservoir. At present, the well has been temporarily suspended, and with the Indonesian oil & gas regulator having given approval to test and frack the well, it would appear that Piarawi can be brought into production as soon as 4Q24.
- - Read this at SGinvestors.io -
- We highlight that global exploration success rates range at 10-20% thus we deem RHP's exploration programme as being an in-line result.
2023 results - above expectations.
- Read more at SGinvestors.io.
