Apache claims it has found the largest Australian oil deposit discovered in decade offshore in WA’s Canning Basin. Photo: Source: Apache
US oil and gas player Apache has made what is being heralded as the country’s largest oil discovery in the last 30 years, and the first in the offshore part of Western Australia’s Canning Basin.
Shares in Australian company Carnarvon Petroleum, a junior partner in the venture, instantly more than doubled on the news.
Apache’s executive vice president and chief operating officer for the international business, Thomas Voytovich, described the result as “exciting”, while cautioning that the results were still in the early stage of evaluation.
Even so, he said the qualities of the reservoir found “point to a commercial discovery”.
The Phoenix South-1 well found oil in at least four different sections of the hole, and testing has shown the reservoir to be productive, with potentially up to 300 million barrels of oil in place, Apache reported on Monday.
“If these results are borne out by further appraisal drilling, Phoenix South may represent a new oil province for Australia,” Mr Voytovich said.
Carnarvon Petroleum one of the three junior partners in the Apache-led venture, described the result as “one of the most significant developments in Australian oil and gas in recent times”.
Carnarvon managing director Adrian Cook said the find was “the most significant new oil play in the North West Shelf since the Enfield discovery opened up the Exmouth Basin almost 20 years ago.”
“The implications on the rest of our acreage are still being assessed but the potential is extraordinary,” Mr Cook said.
Carnarvon shares, which closed Friday at 8.1¢, surged as high as 20¢.
Carnarvon owns 20 per cent of the WA-435-P drilling venture, as do Japan’s JX Nippon and unlisted Finder Exploration, while Apache owns 40 per cent and is the operator.
source: smh.com.au
STUDIO 3 NEWCASTLE AUSTRALIA 