Santos reviewed data from Mahalo-1 and Somerby-1, as well as all of the available petroleum and coal exploration wells and seismic data, to determine the reserves. It estimates the most likely volume as being in excess of 400 BCF.
Using a conservative recovery factor of 40%, between 70 and nearly 400 BCF of gas could be recovered.
Santos plans to drill the Mahalo-2 test well in May and the Mira-1 and Humboldt-1 core holes in July.
Its partner, Comet Ridge, currently holds 20% of in the project area in the northern part of ATP 337P.
It has exercised its option to earn a further 20% in by funding a further two coreholes – Mira-1 and Humboldt-1 – along with the twinning of Mahalo-1 to test the interpreted free gas found during the drilling of this well, said Comet Ridge managing director Andy Lydyard.
"Our decision to exercise our option to increase our equity reflects the confidence we have in Mahalo and its potential to host significant gas reserves that can be rapidly commercialised," Lydyard said.
