Woodside farmin focuses on finding gas
Woodside Petroleum Ltd., Perth, farmed into offshore Carnarvon basin permit WA-389-P held 100% by Cue Energy Ltd., Melbourne, in hopes of finding more natural gas for its Pluto LNG project in Western Australia.
MELBOURNE, Apr. 29 -- Woodside Petroleum Ltd., Perth, farmed into offshore Carnarvon basin permit WA-389-P held 100% by Cue Energy Ltd., Melbourne, in hopes of finding more natural gas for its Pluto LNG project in Western Australia.
The deal enables Woodside to gain 65% interest and operatorship of Cue’s block by reimbursing Cue for costs up to $5 million. Cue will retain 35% interest.
Woodside will pay the cost of a 1,440-sq-km 3D seismic program and the reprocessing of existing 3D data. It also will pay the full cost of the first exploration well on the permit.
Cue ascertained the permit contains a large prospect called Caterina along with several other leads that collectively have potential for multi-tcf of gas.
Woodside’s plans for the Pluto project expansion on the Burrup Peninsula near Karratha include construction of two additional LNG trains that will require the backing of 70 tcf of gas reserves.
The company embarked on a 20-well exploration program in the Greater Pluto region in an effort to secure these reserves.
Any discovery in nearby WA-389-P likely would be tied into the Pluto development.
It is expected Woodside will begin the seismic work this year in readiness for drilling a well in Cue’s permit in 2011.