The company said it is currently undertaking engineering studies to select a development option for the project, known as the Pyrenees development.
BHPB said preliminary results from drilling in the Exmouth Sub-basin Block WA-12-R, off Western Australia, have been positive and increase the overall volume of oil previously discovered in 2003 by BHP Billiton with its Ravensworth-1 well located in the adjacent WA-155-P (1) and Crosby-1 in WA-12-R.
Since May this year BHP Billiton has undertaken a six-well drilling campaign in the permit, which is located about 45km north of Exmouth with water depths in the range of 190 - 210m.
BHP Billiton Petroleum President Americas/Australia Operations and Technology, Mike Weill said the Stickle-1, Harrison-1, Crosby-2 and Ravensworth-2 results represent a series of oil discoveries over adjacent fault terraces.
The Crosby-1 well was drilled in October and encountered a gross oil column of 34.7m with 29.4m of net pay in the Lower Barrow Group Sandstone Reservoir. Ravensworth-1 drilled in July encountered a gross oil column of 37m and a gross gas column of 7m with 43.5m of net pay in the Lower Barrow Sandstone Reservoir.
“These accumulations occur in reservoirs of similar size and quality and are relatively close to one another. We can develop these as a combined scheme and together they equate to a medium-sized oil reserve,” Weill said.
The Exmouth Sub-basin has undergone a high level of drilling activity and BHP Billiton has executed a total of 18 wells in the basin over 2003 and 2004, comprising nine in WA-255-P (2), seven in the adjacent WA-12-R and two in WA-155-P (1) permits.
BHP Billiton owns a 71.43% interest and is operator of WA-12-R with partner Apache Energy holding 28.57%.
The company is set to post a bumper full-year net profit of about $US3.3 billion ($4.66 billion), eclipsing the record Australian $4.1 billion result Telstra posted last week. Rumours of the impending profit have seen stock in BHPB climb almost 1% to $13.09.
There are two adjacent, but separate offshore hydrocarbon fields within the West Muiron structure, about 50 km north of Exmouth. The Macedon gas field was discovered in 1992 by the West Muiron-3 well with a follow-up appraisal campaign in 1994.
The Pyrenees oil and gas field was discovered in 1993 with the West Muiron-5 well. Development of the Pyrenees heavy oil accumulation has been considered only likely to proceed as part of a larger heavy oil project undertaking.
