Oilex group to drill in Timor Sea JPDA

April 27, 2009
A group led by Oilex Ltd., Perth, has identified 10 prospects as potential drilling targets on Block 06–103 in the northwest corner of the Joint Petroleum Development Area in the Timor Sea between Australia and Timor–Leste.

A group led by Oilex Ltd., Perth, has identified 10 prospects as potential drilling targets on Block 06–103 in the northwest corner of the Joint Petroleum Development Area in the Timor Sea between Australia and Timor–Leste.

Final prospect selection for the first two wells is under way, and the group has placed under contract a floating drilling unit capable of operating in the block. The unit is expected to be available to begin drilling in the third quarter of 2009.

The group identified the prospects from a portfolio of more than 20 prospects and leads on the block in the Flamingo Trough.

The prospect inventory includes a number of structures with the potential to contain mean estimated prospective resources in excess of 100 million bbl of oil and six other features that offer mean estimated prospective resource potential in excess of 50 million bbl. Of these high–graded prospects, four are in less than 470 m of water.

Operator Oilex completed seismic acquisition, processing, and interpretation in early 2009 on behalf of the joint venture. More than 3,000 sq km of 3D seismic were shot or reprocessed, and all of the open file 2D seismic data in the nearby region were incorporated into the interpretation.

Oilex said, “The results of the work confirm the initial view of the JV that this block is very attractive for oil exploration and has the potential to host very significant oil resources near to existing producing fields and the recent discovery, Kitan, by Eni Australia in the adjacent block to the west.”

Kitan–1 flowed 6,100 b/d of oil on test. TD is 3,568 m. It is on Block 06–105 held by Eni 40%, Inpex of Japan 35%, and Talisman Resources Pty. Ltd. 25% (OGJ, Mar. 17, 2008, Newsletter). Kitan–2, 1.6 km east, went to TD 3,540 m. Early estimates are that 30–40 million bbl of oil are recoverable from Kitan.

Eni’s proposed development area encompasses Kitan field and a satellite closure, Kitan South, 1.5 to 2 km south. A development plan calls for producing three wells through an FPSO and possibly tieing in the 1996 Jahal and 2001 Kuda Tasi marginal discoveries (OGJ Online, July 23, 2008). Jahal and Kuda Tasi hold a combined 10 million bbl recoverable.

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A number of international oil and gas companies are reviewing Oilex’s farmout terms, and the company hopes to complete farmout arrangements in the current quarter.

Each holding 25% interest in the block are Oilex, Global Energy Ltd. (Videocon), Gujarat State Petroleum Corp. (JPDA) Ltd., and Bharat PetroResources JPDA Ltd.

The Timor Sea Designated Authority began operating on Apr. 2, 2003, under the Timor Sea Treaty between the Timor–Leste and Australian governments. TSDA’s charge is to administer the JPDA on behalf of the governments. The Oilex group was awarded Block 06–103 in August 2006.