USA Ship Shoal 184 and 191, offshore Louisiana Petsec: 7% Overriding Royalty Interest (ORRI)
The Ship Shoal 191 #1 well intersected three gas bearing sands in January 2002 and was suspended for future completion and production. This was followed by the Ship Shoal 194 #1 well on the adjoining lease, which intersected two gas bearing sands and was suspended for future production. The operator expects to drill additional wells after the production facilities are installed.
A production platform is currently being constructed and will be installed at Ship Shoal 191 to process production from both wells drilled to date. Production is expected to commence in the September quarter of this year.
West Cameron 343, offshore Louisiana Petsec: 75% working interest (61.75% net revenue interest)
Operator: Petsec Petsec was awarded the West Cameron 343 block following the March 2002 MMS lease sale. The price was US$128,875.00.
West Cameron 343 is approximately 100 kilometres offshore Louisiana in approximately 20 metres of water, north of and adjoining the West Cameron 352 lease.
Petsec expects to drill a well in the September quarter from the West Cameron 352A platform, to test this lease.
West Cameron 352, offshore Louisiana Petsec: Earning 75% working interest (57.375% net revenue interest) Operator: Petsec
Petsec has the right to earn a 75% working interest in the exploration rights on West Cameron 352 by meeting the first US$1.25m of the costs to drill a well on the lease. The lease owner retains a 5.83% overriding royalty interest (ORRI) with the option to convert the ORRI to a 25% working interest on payout. The lease is currently held by production from one well.
The joint venture has identified six prospects using 3D seismic, all of which can be tested and, if successful, produced from the existing platform and pipeline facilities.
Petsec proposes to drill two wells in August/September from the existing platform. Petsec will be the operator.
The first well, the A-13, is expected to spud in late August to test a prospect in West Cameron 352 and if successful, will be followed by the A-17 well, which is designed to test a prospect in Petsecs adjoining West Cameron 343 lease.
Vermilion 258, West Cameron 145, Ship Shoal 180, offshore Louisiana High Island 33, offshore Texas Petsec: 100% Working Interest
New data is being incorporated into the prospect analysis prior to seeking joint venture partners in the second half of 2002.
Main Pass 89, offshore Louisiana Petsec: 4% ORRI, 30% Working Interest
Joint venture partners are being sought to drill a well on the lease.
West Cameron 462, 480, offshore Louisiana Petsec: 4% ORRI
Petsec agreed, in February 2002, to earn a 25% working interest in Block 22/12 in the Beibu Gulf, offshore China, by participating in the drilling of the Wei 6-12-1 prospect. The block is located approximately 60 kilometres off the southern coast of China, northwest of Hainan Island in shallow water, 25 to 40 metres deep. Four undeveloped oil discoveries exist on the lease. A pipeline to the Weizhou Island oil terminal, 10 kilometres to the north, passes within five kilometres of the Wei 6-12-1 prospect.
The earn-in well was drilled in March 2002 and encountered nine metres of net oil pay in the interval 1,559 metres to 1,572.5 metres with 28% porosity approximately 80 metres down dip from the high point of the structure. The well was plugged and abandoned. Only part of the block is covered by 3D seismic which was shot in 1995 and again in 1996. To better define the existing five oil discoveries as well as the remaining exploration potential, the Joint Venture is conducting a 3D seismic survey over the entire block. The survey is expected to be completed by the end of August.
FINANCE
Cash and liquid assets on hand at 30 June 2002 were the equivalent of $17.2 million, of which US$9.2 million were US dollar denominated.
Exploration expenditure for the quarter was $769,364.
For further information, please contact: Geoffrey H Fulcher COMPANY SECRETARY Petsec Energy Ltd Level 13, 1 Alfred Street, Sydney NSW 2000 Telephone: (61 2) 9247 4605 Facsimile: (61 2) 9251 2410
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
