05 September 2017 09:13 News The extended reach well, which is...

• 05 September 2017
  
• 09:13
  
• News

The extended reach well, which is being drilled from a coastal location into the offshore area of the basin to test the standout prospect within the narrow T/P15 spudded at 3pm yesterday afternoon.

"In an excellent start to the program, site works and a smooth rig mobilisation accelerated the spud date from the original forecast by approximately 11 days," Norwest CEO Shelley Robertson said.

Xanadu-1 will be drilled to a planned maximum total depth of 1863m and is forecast to take just 23 days in total to complete.

The target located beneath shallow water, just 1.3km from the coastline, about 250km north of Perth, adjacent to the township of Port Denison.

The main target is the Dongara Sandstone with a potential between 3-22MMbbl with a best estimate 12MMbbl.

There are secondary targets within the Irwin River Coal Measures (13-159MMbl with a best estimate 88MMbbl) and the High Cliff Sandstone (29-256MMbbl with a best estimate 60MMbbl).

Total upside is 437MMbbl with a best estimate 160MMbbl.

The main risk of the well is fault seal, and the level of risk increases for the deeper zones, from 14% at the Dongara level, 13% at the IRCM level and just 6% for the HCSS.

The structure is considered to be one of the largest untested oil prospects in the Basin, with this same play resulting in four oilfield discoveries in the vicinity, namely Cliff Head, Hovea, Eremia and Jingemia.

"I am thrilled that we have now spudded the Xanadu-1 well," Robertson said.

"The accelerated commencement of drilling is due to our dedicated and experienced technical team from Aztech Well Completions, and the equally experienced Enerdrill Rig-3 crew.

"This is the same combination that recently completed the highly successful Waitsia-3 and Waitsia-4 drilling program for AWE. Along with our JV partners, we are very pleased that drilling has now commenced, and look forward to successful results over the coming few weeks".

With success will be fast-tracked into development through partner Triangle Energy's Arrowhead facility, which is nearby. That could also lead into a jack-up being mobilised to test the Xanadu West area.

It is the first rank wildcat in the basin for several years, and the first offshore well in the basin since 2011's Red Hill South-1 duster.

Norwest's 25% operated stake is being carried by three farminees: Triangle and UK-based 3C Group are contributing 80% of the costs to each earn 40%, while Whitebark Energy will pay 20% of the costs to earn a 15% interest.