WESTERN GAS AND VALARIS SIGN CONTRACT FOR DRILLING OF SASANOF-1 EXPLORATION WELL
Media News: 25/11/2021
HIGHLIGHTS
- Contract signed with Valaris for the MS-1 semi-submersible rig to drill the Sasanof-1 exploration well on the North West Shelf in March/April 2022
- Global Oil and Gas (ASX:GLV) transaction completed providing 50% of well funding to earn a
- Sasanof-1 exploration well is targeting a 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P501), with 32% geological chance of success
Western Gas is pleased to announce that it has executed the formal contract with Valaris for the
MS-1 semi-submersible rig to drill the Sasanof-1 exploration well. The Sasanof-1 exploration well is in permit WA-519-P in Commonwealth waters about 207 km northwest of Onslow, Western Australia. Drilling is scheduled to commence in March/April 2022 following the rig relocating from nearby activities on the North West Shelf.
The contract marks another milestone towards the drilling of the Sasanof Prospect. Securing the MS-1 rig following its current regional program provides significant benefits for the delivery of a safe and efficient drilling campaign.
The Sasanof Prospect is on trend and updip of the liquids rich, low CO2 Mentorc Gas and Condensate Field and nearby the Giant Gas Fields of Scarborough and Io-Jansz in the Carnarvon Basin. ERC Equipoise Ltd (ERCE) has determined Sasanof has an estimated 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P50), with a 32% Chance of Success. The high case 3U Prospective Resource estimate is for 17.8 Tcf gas and 449 Million bbls condensate (P10).
Western Gas has also completed a major commercial milestone with Global Oil and Gas Limited (ASX:GLV) announcing on 23 November 2021 that it had finalised the purchase of 25% of Western Gas (519P) Pty Ltd, the holding company for WA-519-P. The acquisition will see GLV fund 50% of the cost of drilling the Sasanof-1 exploration well and issue Western Gas A$3 million of performance shares.
Sasanof-1 will be a vertical well and drilled to a total depth of approximately 2500 m in 1070 m of water, providing a low cost, high impact exploration well in a known and proven hydrocarbon province. Drilling costs are estimated at US$20-25 million.
COMMENT – WESTERN GAS
“We are delighted to award Valaris this contract given its global expertise backed by its extensive knowledge of operating offshore Western Australia. With the drilling slot locked in with Valaris and GLV secured as a partner, we are now well on our way to delivering one of the highest impact wells to be drilled on the North West Shelf in decades.”
ABOUT THE SASANOF PROSPECT
The Sasanof Prospect covers an area of up to 400 km2 and is on trend and updip of Western Gas’ liquids rich, low C02 Mentorc Field.
ERCE estimates the Sasanof Prospect to contain a 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P501), with a high case 3U Prospective Resource estimate of 17.8 Tcf gas and 449 Million bbls condensate (P101).
Sasanof is a large, seismic amplitude supported, structural-stratigraphic trap in the high-quality reservoir sands at the top of the Cretaceous top Lower Barrow Group formation on the Barrow Delta within the Exmouth Plateau.
Sasanof-1 will be Western Gas’ first well drilled from its extensive exploration portfolio surrounding the existing Equus Gas Project that contains a discovered resource of 2 Tcf and 42 MMbbl (2C Gaffney Cline2). The Equus Gas Project has a historic exploration drilling success rate of 88%, with 15 discoveries from 17 wells.
ABOUT WESTERN GAS
Western Gas is a Western Australian company focused on exploring and accelerating development of our strategic resource position in the heart of the North West Shelf, Australia’s premier production basin. Our strategy is focussed on adding significant value to our portfolio through high impact exploration drilling and maturing our Equus Gas Project to meet growing domestic and export gas demand.
NOTES
Qualified Petroleum Reserves and Resources Estimator Statement
Note 1 - The Sasanof undiscovered resources figures in this announcement are based on an Independent Assessment of Hydrocarbon Volumes for the Sasanof Prospect, Western Australia completed by ERC Equipoise Ltd in August 2021.
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