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Cott Oil And Gas To Gain Clearer Picture Of Pandora Floating LNG Option

Cott Oil and Gas (ASX: CMT) will soon receive an evaluation of the use of floating liquefied natural gas technology to develop its Pandora Gas Field offshore Papua New Guinea.

A concept study by Houston-based Wison Offshore and Marine for a suitable FLNG vessel is expected to be completed in the second quarter of 2014.

This will include high level estimates of construction and operating costs.

Cott expects to finalise the seismic program for PPL 437 (CMT 20%) in the Papuan Basin in in the current quarter and commence the shoot in the second half of 2014.

It also expects acquisition of airborne magnetic and gravity over PPLs 435 and 436 (CMT 50%) to be completed in the current quarter.

Pandora Gas Field

Cott has a 40% interest in Pandora, which has a Best Estimate Contingent Resource of 792 billion cubic feet of gas and could potentially support a 1Mtpa FLNG vessel for 10-15 years, producing sales product worth over US$650 million per annum.

It had earlier this year engaging Wison to prepare a concept study that will outline a potential FLNG concept that would be appropriate for the resource, location, gas composition and expected production rates of the Pandora gas field.

Wison is currently constructing the Caribbean FLNG vessel at its Nantong shipyard in China.

The company is also examining a range of options for commercialising its interest in PRL 38.

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