EOG Resources Inc. plans its first move into Australia following completion of the acquisition of Western Australian Bonaparte Gulf permit WA-488-P containing the Beehive prospect from Melbana Energy Ltd., Sydney.
EOG paid an initial sum of US$7.5 million for 100% interest and will make conditional additional payments based on EOG’s future program and success.
The company will begin a round of geophysical and geotechnical work in February-June 2022 in a 440 sq km envelope surrounding the Beehive prospect in the northeast corner of the permit close to the marine boundary with the Northern territory.
Studies will be designed to collect seabed data and shallow geological information to aid selection of a drilling location for wildcat well Beehive-1.
The well could be drilled as early as third-quarter 2022, but no later than August 2023 (to comply with permit work program commitments) using a jack up rig. Water depths in the area are 40-50 m.
McDaniel & Associates previously estimated the prospect to potentially contain 388 MMboe on a best estimate basis with an upside to 1.6 billion boe.
Melbana later revised these figures to estimates of 416 MMboe (best estimate) and 1.4 MMboe (upper estimate) following interpretation of 3D seismic data acquired across Beehive in 2018.
The prospect is enhanced by its proximity to the existing ENI-operated Blacktip gas field (discovered in 2001) and pipeline connection to the Northern Territory gas grid.
Melbana retained its 100% interest in adjoining permits WA-544-P containing the undeveloped Turtle oil discovery and NT-P87 in the Northern Territory sector containing the undeveloped Barnett oil discovery. Melbana is currently running geoscientific studies over both permits.