In a result that also represents its first major offshore commercial oil success as operator, Santos said the Mutineer-3 well (WA-191P) flowed at a rate of 1,049 kilolitres (6,600 barrels) of 42.7° API oil per day with less than 3% water cut and minimal associated gas through a 15.9 mm (40/64 inch) choke.

The perforated test interval was 3,146 metres to 3,149 metres, where the well encountered eight metres of high quality oil pay in good quality Angel Formation sandstones in earlier drilling. The Adelaide-based oil and gas producer said the reserves range for the Mutineer field has increased to 50-120 million barrels (mmbbls) of recoverable oil as a result of the tests.

Santos also said Mutineer-3 is part of an accelerated drilling program for the WA-191-P Joint Venture and will be followed immediately by the Exeter-3 appraisal well in the nearby Exeter oil field, which has a reserve range of between 25 million and 50 million barrels of oil. The well is due to spud next week.

In a statement to the market, Santos added work on the development concept for Mutineer and Exeter will now be completed, with concept selection scheduled in the first quarter of 2003. The company's other producing interests in the Carnarvon Basin include East Spar, Barrow Island, Thevenard, Stag and Legendre.

Janet Hann was previously the project manager for Austrian company OMV's recent Patricia-Baleen development in the Otway Basin in Victoria. A company spokesman said Santos had not yet determined whether it would open a Perth office for the project. Santos closed its office in West Perth in the late 1990's.

Participants in the Mutineer-3 well are Santos (33.3977%), Kufpec (33.4023%), Nippon Oil (25%) and Woodside (8.2%).