Australian oil and gas group Oilex has begun drilling the first...

Australian oil and gas group Oilex has begun drilling the first of two wells on its contract area in the Timor Sea.

The Loré-1 well is targeting a prospect with mean prospective oil resources of 195 million barrels, on a 100% basis. The planned total depth of the well is approximately 3,670 metres and is anticipated to be completed by late December 2009.

The "Songa Mercur" drilling rig arrived on location in the JPDA 06-103 contract area on Wednesday (18 November) and laid anchors ahead of schedule after mobilising from Dampier. The rig is contracted to drill two wells, with an option of one additional well.


The Songa Mercur drilling rig

After drilling the Loré-1 well the rig will drill the Lolotoe prospect which is targeting mean prospective oil resources of 90 million barrels respectively.

JPDA 06-103 is a highly prospective offshore oil exploration block and has the potential to host significant oil reserves, according to Oilex. It is located near to a number of existing producing fields as well as Eni's recent Kitan oil discovery currently under development.