Woodside and Origin's Halladale-1 DW-1 exploration well has intersected a gross gas-bearing interval of 59 metres true vertical depth at the Black Watch prospect in Victoria's offshore Otway Basin, the partners report.

Following interpretation of wireline log and pressure data, the well has been plugged back as planned to a measured depth of 808m.

Halladale-1 DW-2, the second exploration well to be drilled from this location, has been spudded as a sidetrack from the original well bore and is being deviated towards the north to test the Halladale prospect.

The wells are located in VIC/P37(v), about 4km from shore and 24km west of Port Campbell.

Participants in Halladale-1 DW-1 (Location Black Watch) are Origin Energy Limited (operator) 37.5% and Woodside Energy Limited 62.5%.

Meanwhile, Woodside managing director Don Voelte has told the Australian Petroleum Production and Exploration Association conference in Perth that the company is prioritising development of both its recent Pluto gas discovery and the older Browse Basin discoveries.

"We must ensure we make strong progress in developing our Browse gas fields, a project with the capacity to be about twice as important to Woodside as the North West Shelf," Voelte said in an address to the conference.

While equities vary over four separate permits, Woodside has an aggregate of about 50% interest in the region. ChevronTexaco and BP PLC have about 16.75% each. Dutch/Shell Group and BHP Billiton have 8.375% each. Woodside said all of the stakeholders wanted to fast-track the Browse project.

Voelte said more than 20 trillion cubic feet of natural gas and 300 million barrels of condensate could be recovered from Browse.

"Browse is ideally positioned to supply emerging LNG markets in the Asia-Pacific region, and I expect this project to take on a much higher profile over the coming year," he said.

The fields, which include Scott Reef, Brecknock and Brewster are about 380km offshore in water 50-350m deep.

He said potential buyers in East Asia and the US had shown interest in Browse Basin gas and Woodside

wanted to accelerate development. An onshore LNG plant at Broome could pcomprise two LNG trains with a total capacity of 6-7 million tonnes/year, according to Voelte.

"Browse is not without its challenges, but I'm very enthusiastic and optimistic about its future. I want development well underway by the time I leave Perth [in 2009]," he said.

Voelte also said Woodside would move quickly to develop its 100%-owned Pluto gas discovery, which commentators say could be combined with ChevronTexaco's nearby Wheatstone field to feed a sixth North West Shelf train.

But expansion of the North West Shelf and development of Browse would not be enough to keep Woodside growing at the pace it desired, according to Voelte.

"Woodside must make new discoveries of oil and gas, and the reality is that most of theese discoveries are likely to come outside Australia," he said.

"About 90% of the world's proven oil is in the Middle East, Africa, Russia, Central Asia, and Central and South America - areas outside our traditional focus. Companies such as Woodside must gravitate towards these centres of opportunity of they are to continue to grow."

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