BSOC will be free-carried by Apache through the drilling and testing of the well, which will complete Apache’s Vic-P42 farm-in obligations, earning it a 60% interest and operatorship in the permit.
BAS will retain a 20% interest in the well and the permit. Japanese major Inpex will also retain a 20% interest.
The farm-in well is scheduled to begin drilling in March, as the third Apache-operated Gippsland Basin well in 2008. The company also has well commitments in neighbouring Vic-P59.
Apache has executed a contract for the use of the West Triton, a jack-up rig being built in Singapore.
The final drill prospect will be selected using new mapping based on state-of-the-art 3D seismic data, according to BSOC.
“Site surveys, which ensure safe seafloor conditions for the drilling rig, have already been conducted over a short-list of three potential Vic-P42 targets,” the junior said.
Vic-P42 lies adjacent to Kingfish, Australia’s largest oil field, as well as several other producing oil and gas fields held by Esso and BHP Billiton.
The permit also holds the ZaneGrey and Omeo gas and condensate discoveries.
“The future potential of the permit resides in a strong inventory of prospects and leads, which is being expanded and refined as mapping of the new seismic data becomes available,” BSOC said.
“The Vic-P42 farm-in well will be part of a significant Apache drilling program aimed at the potential of the southern margin of the Gippsland Basin, of which Vic-P42 is a key component.”
Apache acquired the 503-square kilometre Marie 3D seismic survey in April this year, as the first phase of its Vic-P42 farm-in, at a cost of about $20 million. This data complements BSOC's 2002 3D survey and completes 3D coverage across the prospective area of the permit.
The Marie data is being processed using pre-stack depth migration (PSDM) techniques, according to BSOC.
“The use of PSDM is significant in this area of the Gippsland Basin, where exploration history shows that the depth calibration of seismic maps is critical,” the company said.
“Apache is also integrating the PSDM reprocessing of the 2002 3D data, together with a new Bream field 3D survey, which has been acquired by trade with Esso-BHP.
“Integration and mapping of these surveys, and the use of PSDM processing, will give Vic-P42 the best chance of drilling successful wells.”
