The two fields are held under retention leases 40km off the north coast of Western Australia in the Southern Bonaparte Gulf, 150km from Wyndham. A total of five discovery and appraisal wells have been drilled since the fields were first discovered by Western Mining in 1984.
Recent detailed studies have estimated mean proved oil reserves in the fields as 20.4mmbbls in the Barnett Field and 35.1mmbbls at the Turtle Field, with both holding oil
in multiple zones. Successful development will have the potential to lift Drillsearch's production to 10,000 to 15,000 barrels of oil per day (bopd).
Interpretation of 3D seismic carried out over the Barnett oil field has indicated a
number of additional development drilling locations up dip from the discovery wells.
The reserves at Turtle field are heavier oil and are considered to have reservoir risk.
“We will complete our due diligence and confirm the economics before we move too much into the development plan, although we will have to drill at least one appraisal well early next year,” said Drillsearch managing director Philip Kelso.
“Development will also depend on what Woodside does at Blacktip. Currently they are planning a pipeline to the NT coast which would be perfect for us to tie into.”
Under the agreement Drillsearch will receive 95% of the Barnett field and 94.1% of the
Turtle field for $1 million and a 5% gross overriding royalty to OMV on all petroleum sales from the property.
“Basically we have bought major interests in some undeveloped oilfields that were too small for OMV but are perfect for a company such as Drillsearch,” added Kelso.
Drillsearch said that the Barnett field will be the first candidate for development and will require appraisal/development wells. Initial scenarios for a Barnett field development envisage a small offshore facility with a pipeline to an onshore treatment and storage facility. Field production would commence at around 10,000 to 15,000bopd.
