Esso Deepwater Gippsland Pty. Ltd. has started drilling the first well in a two-well drilling program in offshore permit Vic/P70 in Bass Strait off Victoria.
The first wildcat is called Baldfish-1. The second will be Hairtail-1. They lie in water depths ranging 350-700 m—some of the deepest water drilled in the Gippsland basin.
Esso Gippsland holds a 100% interest in the permit, which lies 90 km off the east Gippsland coast.
The wells are being drilled by Diamond Offshore Drilling Inc.’s Ocean Monarch semisubmersible drilling rig in a program that is expected to take several months.
Esso Chairman Richard Owen said the exploration program is targeting gas prospects with the objective of proving up resources for timely development and contribution to the domestic gas market.
The $120-million (Aus.) investment in this program is in addition to recent investments in the region, including the $4.5-billion Kipper-Tuna-Turrum offshore project, the $1-billion Longford gas conditioning plant, and the future development of West Barracouta gas field.
Permit Vic/P70 incorporates areas previously explored by Apache Energy.