RH Petrogas confirms oil, gas, and condensate at Northwest Klagagi-1 well in Southwest Papua, Indonesia

RH Petrogas has confirmed oil, gas, and condensate resources at its Northwest Klagagi-1 well in the Kepala Burung Production Sharing Contract area of Southwest Papua, Indonesia. The announcement, dated September 1, 2026, follows a three-test drill stem testing program at the NWK-1 well. The well was drilled by Petrogas (Basin) Ltd., a subsidiary 82.65% owned by RH Petrogas.

RH Petrogas confirms hydrocarbon resources at NWK-1 well

The three-DST program tested separate intervals across two distinct zones. Two tests covered the Upper Kais development zone; one targeted the Lower Kais formation in the exploration zone. Together, they gave a clearer picture of what the field holds — and the Upper Kais results came back stronger than expected.

Confirmed resources include gas, condensate, and an oil rim. That last finding stands out. The original well prognosis considered an oil discovery low-likelihood, so actually finding one was a genuine surprise.

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 only 20 BPD of water.

Well design targeted multiple formations across development and exploration zones

The NWK-1 well was built around two goals: develop the gas and condensate potential already identified in the Upper Kais Formation, then go deeper — evaluating the Lower Kais Formation, the Oligocene-aged Sirga Formation, and underlying Devonian-aged basement rocks for exploration upside.

The deeper targets didn’t deliver. No hydrocarbon indications showed up in either the Sirga Formation or the Devonian basement.

The Lower Kais told a more complicated story. During drilling, the interval looked promising — elevated mud-gas readings and visible oil shows. But when the DST ran, it recovered only formation water. That result effectively closed the door on the deeper exploration zone. The interval has been plugged and abandoned, with associated costs of approximately US$4.5 million net to the group’s working interest, to be expensed in the financial year ending December 31, 2026.

Upper Kais tests record strong gas and condensate flow rates, plus an unexpected oil rim

The Upper Kais results are where things get interesting. Both tested intervals showed what the company calls strong hydrocarbon deliverability.

The lower interval was tested across multiple choke conditions, flowing approximately 1.6 to 2.7 MMSCFD of gas and 40 to 109 barrels per day of oil, with water production ranging from around 90 to 363 BPD. That pattern points to a gas cap sitting above an underlying oil rim — one that wasn’t expected. The original well prognosis put the odds of encountering oil at low likelihood. To keep the option open, the oil-bearing interval has been isolated with a bridge plug, preserving the ability to produce that oil rim separately if it makes sense later.

The upper gas-bearing interval performed well on its own terms. 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 only 20 BPD of water. A short-term step-up test pushed gas rates higher still — approximately 6.16 MMSCFD at a 26/64-inch choke. For a single well in an early-stage field, those are meaningful numbers.

RH Petrogas to conduct further reservoir evaluation before finalizing development strategy

RH Petrogas isn’t rushing a development decision. The company says it’ll undertake additional reservoir evaluation work before settling on the right strategy for the Northwest Klagagi Field, and no timeline for that decision has been disclosed.

The caution makes sense. Confirmed resources now span three hydrocarbon types — gas, condensate, and oil — each carrying different production economics and infrastructure requirements. Getting the development concept right matters more than moving fast. The field sits within the Kepala Burung Production Sharing Contract area in Southwest Papua, the operational and regulatory framework that’ll shape whatever path the company ultimately takes.

Key highlights from the NWK-1 well testing program

Here’s where things stand after the testing program. The Upper Kais Formation confirmed strong gas and condensate deliverability across both tested intervals — gas rates reached up to approximately 6.16 MMSCFD in step-up testing, and condensate flows of around 192 BPD were recorded during the sustained six-hour test.

The unexpected oil discovery in the lower Upper Kais interval adds commercial optionality. Considered low-likelihood going in, it remains accessible: the bridge plug now in place means the company hasn’t foreclosed on that opportunity.

The deeper exploration zone — Lower Kais, Sirga Formation, and Devonian basement — didn’t yield commercial hydrocarbons. That portion of the well has been plugged and abandoned, with roughly US$4.5 million in net costs to be expensed this financial year.

Additional reservoir evaluation work is the next step. Until that’s complete, the development strategy for the Northwest Klagagi Field stays open. What’s no longer in question is that the Upper Kais Formation holds real hydrocarbons — and more variety than the original prognosis anticipated.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.