zola field attracts attention

Australia: Zola Field Attracts Attention

Posted on Oct 13th, 2011

Global demand for large assets in favorable locations is currently very strong, according to Tap Oil Ltd., and the company has recently received several inquiries from large overseas industry players about Tap’s plans for its Zola field on Block WA-290-P offshore in the Carnarvon Basin, Western Australia.

Tap recognizes that its size and funding capabilities are challenges to monetizing an asset like Zola prior to the incurrence of the large-scale LNG development costs that are likely required to bring the asset into production. The company is confident that it can maximize the value of the Zola asset on attractive terms at the right time.

A recent independent report by RPS Energy Services Pty. Ltd. indicated prospective resources in the Greater Zola Structure were 2.3 trillion cubic feet (Tcf), mean estimate. The Zola-1 well delineated a mean contingent resource of 378 billion cubic feet (Bcf).

“The RPS report on the Greater Zola Structure confirms resource potential significantly greater than the upper end of our pre-drill estimate of 1-2 Tcf. We will now work through various options for extracting the most value for Tap shareholders from the Zola asset,” stated Troy Hayden, Tap’s managing director and chief executive officer.

A new 3D seismic survey was acquired over the permit post-discovery and the processing of this seismic data is expected to be completed by May 2012 and drilling will follow late in 2012.

Located close to existing and developing gas infrastructure, Zola could have multiple potential development options. Any development at Zola could also encompass the overlying Antiope gas discovery, which is not included in the above estimates.

Joint venture participants are Apache Northwest Pty. Ltd. (30.25%), operator, Santos Offshore (24.75%), OMV Australia (20%), Nippon Oil Exploration (Dampier) Pty. Ltd. (15%), and Tap (Shelfal) Pty. Ltd. (10%).

(epmag)

http://www.lngworldnews.com/australia-zola-field-attracts-attention/