Tap Oil: Zola-1 well off Australia finds gas By David Winning SYDNEY (MarketWatch) -- Tap Oil Ltd. (TAP.AU) said Wednesday the Zola-1 exploration well had cut through around 125 meters of gas-bearing sands, ranking it among the most promising finds offshore Western Australia state in recent months.
Data indicated the size of the Zola field was likely to be at the upper end of its estimate of 1-2 trillion cubic feet of natural gas, Tap said in a statement.
Around 4 trillion cubic feet is typically needed to justify construction of an onshore liquefied natural gas processing unit, or train, although many companies are investigating the feasibility of floating facilities that can develop smaller discoveries profitably.
The Zola-1 well was drilled in 285 meters of water to the south of the giant Gorgon gas field being developed by U.S. oil major Chevron Corp. (CVX) and partners.
Tap Oil owns 10% of the block containing the Zola-1 gas field. U.S. producer Apache Corp. /quotes/comstock/13*!apa/quotes/nls/apa APA +0.92% operates the block with a 30.25% interest, while Santos Ltd. (STO.AU), OMV AG and JX Holdings Inc. (5020.TO) have smaller stakes.
Last week, Santos Chief Executive David Knox told reporters that natural gas from the Zola field could be processed through its Reindeer joint venture with Apache.
Other options include Apache's Varanus Island facility or one of the large gas-export hubs planned in Western Australia, Knox said.
TAP Price at posting:
$1.01 Sentiment: Buy Disclosure: Held
