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Appraisal well confirms significant resource upgrade for the Barossa gas field in the Bonaparte Basin

Appraisal well confirms significant resource upgrade for the Barossa gas field in the Bonaparte Basin

Santos today announced that the Barossa-3 appraisal well has confirmed significant upside to the resource position for the Barossa gas field in NT/RL5, located in the Bonaparte Basin offshore Northern Territory.

The Barossa-3 well is located approximately 300 kilometres north of Darwin, 9 kilometres from the discovery well Barossa-1ST1 and 14 kilometres from the successful Barossa-2 appraisal well drilled in mid-2014. The water depth at location is 268 metres.

The well intersected a gross gas bearing interval of 152 metres. Wireline logging has confirmed 104 metres of net pay over the Jurassic-aged Elang Formation sands between 4,032 and 4,184 metres measured depth relative to the rotary table (MDRT).

Barossa-3 flow tested gas to surface at a rate of 27 million standard cubic feet per day (MMscf/day) through a 68/64 inch choke with a flowing well head pressure of 1,304 psi. The test was conducted over a 139 metre interval between 4,031 and 4,170 metres MDRT, with three zones open to flow totalling 113 metres. Well test flow rates were constrained by the downhole production tubing size.

A condensate gas ratio in the range of 4-5 bbls/MMscf was measured at surface, with gas composition analysis indicating a carbon dioxide content of 18-19%.

Santos’ General Manager for WA & NT, Brett Woods, described Barossa-3 as a significant result for the company, exceeding pre-drill resource estimates for the previously undrilled north-western sector of the Barossa structure.

“It is an exciting outcome which demonstrates the presence of high permeability sands over an extensive area of the field,” he said.

“The Barossa-3 result strengthens our resource position in the Bonaparte Basin and ensures the Barossa gas field is well positioned to potentially supply gas for either back-fill or expansion at Darwin LNG.”

Barossa-3 is the second well in a three-well campaign, with Barossa-2 intersecting 88 metres of net pay across a 217 metre gross interval in mid-2014. Barossa-3 will be immediately followed by the Barossa-4 appraisal well, which is anticipated to commence drilling in mid-January 2015. The Barossa appraisal drilling campaign is being funded by joint venture partner, SK E&S, up to a US$260 million cap.

Santos holds a 25% interest in Barossa Caldita joint venture, with partners ConocoPhillips (37.5%, Operator) and SK E&S (37.5%).