Delays and heavy cost increases have been incurred due to the boom conditions currently being experienced in the oil and gas exploration industry, according to Gilbert Block partner Lakes Oil.
“It is now expected that the rig Ocean Patriot will be on site in September/October 2005 some eight to nine months later than expected,” Lakes said.
“These delays have been unavoidable and Lakes considers we are very fortunate to have the rig at all. Credit must be given to the operator.”
The planned depth of this well is 650 metres and drilling is expected to take about 11 days.
While Bass Strait Oil Company will not have an interest in the drilling of Gilbert-1, it has entered into a drilling management and agency agreement with Lakes under which BSOC will drill the well as agent for the Gilbert partners on a cost-plus basis.
Interests in the Gilbert Block subsequent to the drilling of Gilbert will be: Gippsland Offshore Petroleum Ltd 51%, Lakes Oil N.L. 26%, Moby Oil and Gas Ltd 10%, Eagle Bay Resources NL 10% and Rilo Explorations Pty Ltd 3%.
Gippsland Offshore Petroleum was formed when Lakes Oil spun off the bulk of its offshore Gippsland interests. Lakes will continue to focus on onshore prospects.
Gippsland Offshore Petroleum also has a stake in the eastern portion of PEP 155 in the onshore Gippsland Basin where a White Sands Petroleum drilling rig is expected to arrive on 6 May to drill the first of the two stratigraphic wells in the Marlo region.
“It is expected that each of the wells will be drilled to about 600 metres with the last 300 metres to be cored,” Lakes said in a statement.
“These wells are designed to assess if hydrocarbons have migrated onshore from the huge offshore oil and gas fields. The sites of these two wells have been selected as a result of careful analysis of the Falcon gravity and magnetic survey. Any sign of hydrocarbons in either well would be extremely significant in upgrading our offshore interest.”
White Sands will earn a 10% interest in a designated areas defined as a block two kilometres by two kilometres with the stratigraphic well in the centre. This interest will be earned through White Sands contributing to the cost of the well.
White Sands - which is 15% owned by Bounty Oil & Gas - recently did a similar deal with AuDAX in the PEL 182 in the Cooper Basin, South Australia, where it will earn a 10% equity in the permit by contributing 20% of the cost of each of five wells to be drilled this quarter.
Participating interests in the eastern portion of permit after the wells are completed will be Gippsland Offshore Petroleum Ltd 51%, Lakes Oil NL 46% and Rilo Explorations Pty Ltd 3%. White Sands will earn a 10% interest in a designated area of the permit.
