Borders & Southern has announced the results of the Darwin fluid sample analysis. As previously reported, well 61/17-1 encountered a good quality sandstone reservoir comprising 67.8m of net pay with an average porosity of 22%. The gas condensate reservoir was sampled at four separate levels with 3 fluid samples taken at each level.
The initial condensate yield from the Darwin gas samples, as measured in a laboratory separator test, varies from 123 to 140 stb/MMscf. The API gravity of the condensate is 46 to 49 degrees. Based on the condensate yield and ongoing reservoir modelling, the Company estimates the recoverable volume of condensate to be 130 to 250 million barrels with a mid case of 190 million barrels.
Following these positive laboratory results, the Board will approve a work programme that includes appraisal drilling of the Darwin discovery. Additional wells are necessary to confirm the initial resource estimates and establish a commercial development. In the coming months, activity will focus on a comprehensive technical evaluation of all the data collected from well 61/17-1 and a review of potential development concepts along with project economics.
These results have exciting implications for the Company’s prospect and lead inventory and particularly for those prospects in the Lower Cretaceous play fairway to the south of the Falkland Islands. Borders & Southern’s prospect inventory contains further relatively low risk structural prospects of a similar size to Darwin along with stratigraphically trapped fans of slightly higher risk but larger scale. Some of these prospects will be targeted in the next drilling phase with the objective of adding to the discovered resources of Darwin and building a core development area.
“Discussions with a seismic contractor regarding the acquisition of additional 3D seismic are in progress and we plan to have a vessel in the Falklands at the start of 2013 to commence the survey,”said Borders & Southern in a statement.
This survey will focus on similar prospects to Darwin currently outside our existing 3D area. Whilst the final costs of the 2012 drilling programme will not be fully known until after the demobilisation of the rig later in the year, the Company can state that it is fully funded for the 3D seismic acquisition and processing, the reprocessing of the Company’s 2007 3D seismic data and all the technical studies that need to be undertaken on the samples collected from the two wells.
Given the encouraging results from the Darwin well, the Company will start planning the next drilling programme, which is likely to include both exploration and appraisal wells. The company has said that the the timing of drilling will be dependent on rig availability, but “realistically this will not occur before 2014“. The Company is currently exploring the best way to fund the next phase of the programme, including the possibility of now bringing in partners.
ShoreASCO Consortium, which includes Asco Holdings, Macmahon Contractors and Capella Capital has been awarded a contract to design and construct the world-class Darwin Marine Supply Base, worth approximately $110 million.
Macmahon Contractors will construct the base which will include three marine berths with water, fuel, chemical and drilling mud connections, hard stand and lay down areas, warehousing, waste management facility, storage capacity for drilling muds, chemicals, water and fuel, office space and associated facilities.
Chief Executive Officer of Macmahon, Nick Bowen, said the project was a fantastic opportunity for Macmahon and continues the Company’s delivery of major infrastructure in the Northern Territory. “The supply base will bolster Darwin and the Territory’s reputation as the port of choice for servicing the needs of the offshore industry and is opportunity for Macmahon to establish another piece of major infrastructure, critical to supporting the Territory’s growth,”
The base will be operated by ShoreASCO for up to 20 years. Construction is expected to start in April 2012 and is expected to be complete by the end of 2013.
Paul Henderson, the current Chief Minister of the Northern Territory, Australia has welcomed the signing of the contract, saying the construction would begin in the coming months on the base which would cement Darwin’s position as a major oil and gas hub.
The Minister revealed that Oil & Gas majors have already shown interest in the Marine Supply Base: “Already major players have come on board to take advantage of our world class Marine Supply Base with ConocoPhillips to use if for their existing operations, INPEX confirming they will using the base during their multi-billion gas development and Shell confirming they will use it to service their floating LNG plant in the browse basin.”
- UK: New Premises for Kongsberg Maritime
- Australia: Shore ASCO to Build Darwin Marine Supply Base
- USA: Shell’s Chukchi Sea Oil Spill Response Plan Approved
- UK: DPS Offshore Buys Tritech’s Gemini Sonars
- Norway: PGS Reports Record Late Sales Revenues
- UK: Cargotec’s Chain Wheel Manipulator Wins Award
- Norway: STX OSV Delivers Island Captain
- USA: MOEX Agrees to Pay for Deepwater Horizon Incident
- Norway: Statoil to Use Aker Barents for Well Plugging in Barents Sea
- UK: WilHunter Repaired. Still no Drilling
- Recap: Worldwide Field Development News (Feb 10 – Feb 16, 2012) (mb50.wordpress.com)
- Buy-out firm sells ASCO for £250m (telegraph.co.uk)
- Australia: Saipem Lands Ichthys LNG Work (mb50.wordpress.com)
Saipem’s scope of work will include the Engineering, Procurement, Construction and Installation of 889 kilometres of a 42-inch-diameter subsea pipeline, in water depths of up to 275 metres, connecting the offshore central processing facility to the onshore processing facility in Darwin.
Offshore activities will be carried out during 2014 by the newly-built Castorone pipelay vessel. The recently upgraded Semac 1 pipelay barge will be employed for the shallow water section.
The Ichthys LNG Project is a Joint Venture between INPEX (76%, the Operator) and Total (24%). Gas from the Ichthys Field, in the Browse Basin, approximately 200 kilometres offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889 kilometres subsea pipeline. The Ichthys Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.
- Australia: Clough DORIS Gets LOI for Ichthys LNG
- SHI Bags Inpex Contract for Gas Processing Facility Off Australia
- Australian Government Approves Ichthys LNG Project
- Ichthys LNG Project Releases Invitation to Tender for Semi-Submersible Central Processing Facility (Australia)
- Australia: INPEX, Total Make Ichthys LNG FID
- Australia: All Ichthys Approvals on Track, INPEX Says (mb50.wordpress.com)
- Total and Inpex Launch $34 Billion Ichthys LNG Project Offshore Northwestern Australia (gcaptain.com)
- Australia: Ichthys Cost to Exceed USD 30 Billion, Total CEO Says (mb50.wordpress.com)
- Japanese utilities sign up for Ichthys LNG (news.theage.com.au)