Rick Wilkinson
OGJ Correspondent
MELBOURNE, July 10 -- Chevron Australia has made what it is calling a "significant extension" to Iago natural gas field in the Carnarvon basin off Western Australia.
The Iago-2 appraisal well was drilled by Diamond Offshore's Ocean Bounty Victory-class semisubmersible rig and penetrated 47 m of net pay in the Triassic-age Mungaroo formation. A later test of a 32-m interval within this section flowed 53 MMcfd of gas.
Chevron says the result confirms a southern extension of Iago field in a previously untested reservoir compartment. The Iago-1 discovery well was drilled in 2000.
The successful appraisal means that the field straddles two retention licenses. Iago-1 was drilled in license area WA17R, in which Chevron has 100% interest. Iago-2 was drilled in WA16R, where Chevron has 66.6%; Shell Development (Australia) Pty. Ltd. holds 33.3%.
WA17R also contains Wheatstone gas field, which Chevron has earmarked for a multitrain LNG site as well as domestic gas development.
By next year, the company plans to enter front-end engineering and design phases for this development, which includes a Greenfield mainland gas facility.
Additional gas at nearby Iago will be a welcome extra supply source for this project.
