Santos-led group makes oil find in Eromanga basin

The Santos Ltd.-operated Naccowlah Block joint venture in southwest Queensland’s Eromanga basin made an oil discovery with the first well in a planned five-well campaign.

July 16, 2010

Rick Wilkinson
OGJ Correspondent

MELBOURNE, July 16 -- The Santos Ltd.-operated Naccowlah Block joint venture in southwest Queensland’s Eromanga basin made an oil discovery with the first well in a planned five-well campaign.

The group reported that the Watson West-1 wildcat encountered a 2-2.5-m net oil pay in the basal intervals of the Mesozoic-age Birkhead formation within a gross oil column of 8 m.

The well is west of the existing Watson and Watson South oil fields and targeted a four-way dip closure adjacent to the Watson South field, which has so far produced 2.3 million bbl of oil from the same Birkhead reservoir.

Watson West-1 has been suspended as a future oil producer and initial post-drill estimates indicate oil in place reserves of 300,000-400,000 bbl.

Another four wells will be drilled in the Naccowlah Block over the coming months.

Partners are Santos 55%, Beach Energy Ltd. 38.5%, Drillsearch Energy Ltd. 2%, Inland Oil 2%, and Energy World Corp. 2%.