Tap Oil Limited (Tap) advises that at 0900 hours (AWST) today the Atwood Eagle semi-submersible drilling rig commenced drilling the Tallaganda-1 exploration well in the WA-351-P permit.
The Tallaganda-1 prospect straddles both the WA-351-P and WA-335-P permits in the Carnarvon Basin, offshore Western Australia. The well will target 0.8 to 1.3 Tcf (mean to P10) of gas within WA-351-P (Tap estimate).
The prospect will test the gas potential of sandstones in the prolific Triassic age, Mungaroo Formation, in a well defined horst block as imaged by high quality modern 3D seismic data. This is the primary play type of the North West Shelf.
The well will be drilled as a vertical well in a water depth of 1,141 m and is expected to take 37 days (trouble free) to drill with a projected total depth of 4,250 m. Weekly updates will be provided on Wednesdays during drilling operations.
Tap’s cost for the well will be carried up to a cap of $10 million following Tap’s farmout of 25% of its participating interest in the permit to BHP Billiton Petroleum (North West Shelf) Pty Ltd in 2011.
Tap’s Managing Director/CEO, Mr Troy Hayden, said:
“We are pleased to have commenced the Tallaganda-1 well which has the potential to deliver a resource multiple times larger than Tap’s current 2P reserves. Success at Tallaganda-1 will also give greater certainty as to the prospectivity of the Triassic potential on the permit.”
The Operator completed a detailed assessment of the plays, prospects and leads in the permit in 2010 including the 3D seismic acquired in 2008. Further leads and prospects have been defined in the Triassic Mungaroo Formation which Tap has assessed as a 2-3 Tcf combined speculative resource on block.
Additional leads have been identified in WA-351-P in the Jurassic and Early Cretaceous, both of which are productive elsewhere in the Carnarvon Basin. Current indications are that this shallower potential is larger, but higher risk, than the Triassic in this permit. Further work will be done on these objectives.
WA-351-P Joint Venture Participants
BHP Billiton Petroleum Pty Ltd (Operator)
BHP Billiton Petroleum (Northwest Shelf) Pty Ltd 55%
Apache Northwest Pty Ltd 25%
Tap (Shelfal) Pty Ltd 20%
The Satyr-3 well encountered approximately 243 feet (74 meters) of net gas pay. The well is located 113 miles (182 kilometers) north of Exmouth in the WA-374-P permit area, and was drilled in 3,688 feet (1,124 meters) of water to a depth of 13,369 feet (4,075 meters).
George Kirkland, vice chairman, Chevron Corporation, said, “Satyr-3 represents our thirteenth offshore discovery in Australia since mid-2009. This recent discovery reinforces the quality and value of our Australian exploration lease holdings in the Carnarvon Basin.”
Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company, said, “The Satyr-3 discovery adds to our Australian resource base, further supporting our long-term plans to position Chevron as one of the world’s leading LNG suppliers.”
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Tap Oil Limited (“Tap”) provides the following information on the Hannah-1 commitment well, offshore Carnarvon Basin, Western Australia. The Hannah-1 well is located in permit TP/8, approximately 18km east of Barrow Island. The well will be drilled in water depth of 16m by the jack-up rig Ensco 104.
The well will test a stratigraphic oil play in the lower Cretaceous Barrow Group. The primary target is expected to be intersected at approximately 1,200m. Hannah-1 is expected, on a trouble free basis, to take 10 days to reach a final total depth of 1,368m.
The Hannah-1 well commenced at 05:30 today AWST, 10 November 2011.
The Hannah-1 well will be drilled in 311mm (12¼”) hole to 625m where casing will be set before resuming drilling to final total depth.
TP/8 Joint Venture Participants
Apache Northwest Pty Ltd 68.5000%
Kufpec Australia Pty Ltd 19.2771%
Tap (Harriet) Pty Ltd 12.2229%
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The decision comes just days after Chevron and its Wheatstone foundation partners, including Apache Corp, sanctioned development of a two-train 8.9 million tonne a year LNG operation near Onslow. The partners have regulatory approval for five trains.
The Zola-1 well, which is thought to have hit a field containing up to two trillion cubic feet of gas, is located within striking distance of the path of the Wheatstone trunk line, which will link the project’s fields with the Onslow LNG plant.
Apache (30.25 per cent) is the operator of WA-290-P.
Santos (24.75 per cent), OMV (20 per cent) and Nippon Oil Exploration (15 per cent) are the other equity holders and expected to be interested in Tap’s 10 per cent stake. It is unclear whether the WA-290-P partners hold pre-emptive rights over each other’s stakes.
Tap managing director Troy Hayden would not discuss his WA-290-P plans but pointed to the portfolio restructure that he started since joining the company in December.
“We are always trying to add value,” he said yesterday.
Zola’s attractiveness to other gas players will have increased now that Chevron has sanctioned Wheatstone because it provides a tangible development option for Zola’s gas. However, any go-ahead for Zola’s development, as part of Wheatstone’s expansion, is not expected for several years. The necessary delay is thought to have prompted Tap to try to realise its stake in the permit now.
By Peter Klinger, The West Australian
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