Australian operators continue to chalk up significant exploratory successes.
West Australian Petroleum Pty. Ltd. (Wapet) drilled an appraisal well on the offshore North Gorgon prospect that yielded what is believed to be the biggest single flow rate from an Australian well.
It brightens prospects for another gas development to support long term Australian liquefied natural gas exports.
In addition, Woodside Petroleum Pty. Ltd. gauged another hefty flow rate in its 1 Laminaria discovery well in the Timor Sea off Northern Territory.
Disclosure of the discover spurred BHP Petroleum Pty. Ltd. and Shell Development Australia to sell interests in Woodside to a Melbourne stockbroker.
WAPET NORTH GORGON
Wapet 2 North Gorgon flowed 62.3 Mmcfd through a 1 in. choke from a single interval. The company said the volume was limited by surface equipment, not reservoir potential.
Wapet tested three other zones in the well, with flow rates of 55.6 Mmcfd, 48.5 MMcfd, and 5.5 MMcfd. Condensate volumes were gauged at an average 10 bbl/MMcf.
North Gorgon is the northern section of the three headed Gorgon feature off Barrow Island and south of the Woodside group's North Rankin and Goodwyn fields, which underpin Northwest Shelf LNG exports.
Gorgon and Central Gorgon also contain substantial gas reserves. All three structures were discovered in the early 1980s, but lack of a gas market has hindered development. They also contain enough carbon dioxide to add another hurdle to development.
North Gorgon has the least amount Of CO2 at about 10% and thus is believed to have the best chance of development in the short term. Wapet is working toward what it sees as a window of opportunity in the Asian LNG market at the turn of the century (OGJ, July 19, 1993, p. 14).
The 2 North Gorgon confirmed the north extension of the field and existence of gas bearing sands not previously drilled but indicated by 3D seismic data.
Wapet interests are Chevron Asiatic, Shell Development (Australia), and Texaco Oil Development 28.5714% each and Ampolex Ltd. 14.2857%.
WOODSIDE LAMINARIA
Woodside's 1 Laminaria flowed a combined 7,500 b/d of oil from two shallower zones on production test.
That followed a 5,900 b/d flow from the base of the structure on earlier tests of the well's 102 m gross oil column (OGJ, Oct. 31, p. 25).
Recoverable reserves tentatively have been placed at 250-300 million bbl of oil in the structure on Northern Territory Permit AC/P8. Interests in the discovery are operator Woodside -50% and B14P and Shell 25% each.
WOODSIDE SALE
BHP and Shell seized the opportunity afforded by the Laminaria strike to sell some of their interests in Woodside. BHP sold its remaining 10% interest in Woodside, and Shell a little less than 6%. Shell remains a major shareholder in the upstream Australian company with a 34.27% interest.
BHP has been eager to sell its remaining interest in Woodside for some time. The company held 40% before selling three fourths of that in 1990.
The interests sold most recently were to JB Were & Son at $4.765 (Australian)/share for later resale to a broad cross section of institutional and portfolio shareholders at $4.80/share.
Were made the transaction on two fronts. One was from BHP directly, representing 4.2% of Woodside. The other was from North West Shelf Development Pty. Ltd., owned jointly by BHP and Shell and representing 11.52% of Woodside. That works out to BHP disposing of its remaining 10% and Shell selling 5.73%.
BHP and Shell each stressed that the sales did not represent displeasure with Woodside's prospects. They remain satisfied with the Northwest Shelf project, which Woodside operates. Each retains interests in that project-8.33% of the project's domestic phase and one sixth of the LNG export phase apiece-apart from any Woodside interests.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
Issue date: 11/21/94