Advent Energy Ltd., Perth, has signed a preliminary well services agreement with drilling and engineering consultancy Add Energy (AE) for work in exploration permit PEP 11 in the Sydney basin offshore New South Wales.
AE will review rig availability and engagement terms for a drilling program in the Baleen prospect off the coast between Sydney and Newcastle.
The agreement also calls for AE to look into the regulatory and environmental requirements as well as establish a drilling campaign schedule that includes a review of a program for geosequestration drilling which is part of the Baleen project.
Advent has submitted a drilling application to Australia’s National Offshore Petroleum Titles Administrator (NOPTA) for the Baleen-1 wildcat and the application is in its final decision phase.
The prospect is in the northern sector of the 4,576-sq km permit about 30 km southeast of Newcastle. Water depths in the area are around 150 m and the total depth of the well is expected to be about 2,150 m. The reservoir target is Permo-Triassic, similar to that in the Bowen basin of Queensland. Source rocks are the Permian coal beds.
A number of onshore wells have been drilled in the Sydney basin, beginning in the early 1900s, some with gas flows to surface, but none were commercial.
The offshore sector has attracted a number of companies since the early 1980s, including Santos and Ampolex, and several seismic surveys have been run that indicated up to 10 prospects with potential to hold several tcf of gas.
Advent and Bounty drilled New Seaclem-1 60 km east of Newcastle in December 2010, the only offshore well so far. It was dry.
Advent, an unlisted oil and gas company owned by BPH Energy, Grandbridge, and MEC Resources, holds an 85% interest and operatorship of PEP 11. Bounty Oil and Gas NL holds the remaining 15%.
Advent recently appointed carbon capture specialist Professor Peter Cook as an advisor for the carbon dioxide geosequestration part of the Baleen project.
