WILDCAT FORECAST CUT OFF AUSTRALIA

Prospects for record levels of exploratory drilling off Australia have evaporated because of sagging oil prices earlier this year. Australian Petroleum Exploration Association (APEA) reports only 37 wildcats will be drilled off Australia. That's down from 51 APEA predicted in January, doubled 1993 levels (OGJ, Jan. 31, p. 40). Hardest hit is Western Australia, where the number of planned wildcats plunged to 15 from 25 earlier this year. That represents $110 million (Australian) in foregone

June 27, 1994

Prospects for record levels of exploratory drilling off Australia have evaporated because of sagging oil prices earlier this year.

Australian Petroleum Exploration Association (APEA) reports only 37 wildcats will be drilled off Australia. That's down from 51 APEA predicted in January, doubled 1993 levels (OGJ, Jan. 31, p. 40). Hardest hit is Western Australia, where the number of planned wildcats plunged to 15 from 25 earlier this year. That represents $110 million (Australian) in foregone outlays off Western Australia alone.

Less drastic cuts in exploratory drilling are seen in the Timor Gap area, following the 1 Elang discovery there in February' Plans call for 17 wildcats there in 1994 vs. the earlier projection of 14. APEA blames the offshore cuts on the oil price slide that began in December 1993 and reversed about a month ago. Less affected was onshore exploratory drilling, estimated at 79 wells in 1994, down only five from the earlier forecast. Australian companies plan to spend at least $768 million on development in 1994, down only 3% from the January forecast.