Page 6 - Oil&Gas-AustralAsia-2015-Issue-2
P. 6

Carnarvon upbeat on Apache’s
WA departure
By Marie Ryan

The partnership between Carnarvon “Apache reiterated that drilling the Roc- doing so we have ensured we have the
Petroleum and Apache Energy has 1 well is an important part of their plans financial resources to remain an active
come to an end with the American and remains scheduled to commence in participant in the Joint Venture during
mid-cap selling off all of its offshore the fourth quarter of the 2015 calendar this nest phase of growth.”
Western Australian North West Shelf year. Carnarvon Petroleum and Apache The Roc work program set to go ahead
Assets for AU$2.1 billion. both recognise, and are excited by the for 2015 includes exploration drilling of
The news came after Apache recently fact that the Roc-1 well represents the the prospect in WA-437-P.
finalised its deal with Australian mid- most important exploration well to be “The Roc prospect lies in shallow water,
cap Woodside for its minority stake in drilled in the Bedout Sub basin to date,” making it easy and cheap to develop.
Wheatstone LNG, bringing Woodside’s he said. The target sands are not as deep, so
stake in the project to 13 per cent, and The company discovered oil in the the reservoir is expected to be more
a majority (65 per cent) interest in the Bedout Sub-basin last year at Pheonix productive, and the target structure
Julimar-Brunello gas projects. South-1 describing it at the time as is larger than the successful Phoenix
Apache sold its interest in gas fields the most significant new oil play in South well, so it has the potential to be
in the Exmouth and Canning basins, the North West Shelf since the Enfield a significant commercial discovery – if
including various facilities and the discovery in the Exmouth Basin 20 recoverable oil is found,” Mr Cook said.
other assets incorporating the com- years ago. “If successful we will be keen to move to
pany’s Varanus Island holdings to a At a conference in March Carnarvon’s appraise the field and progress toward
private equity consortium that includes chief executive said since the discovery commercialisation,” he said.
Macquarie Capital Group Limited and the oil price had plummeted, market Carnarvon Petroleum will spend
Brookfield Asset Management. support had evaporated and the explor- AU$10 million on acquiring new 2D
The US Company is exiting the offshore er’s share price had dropped back to a and 3D exploration data over WA-
North West Shelf to concentrate on “pre-discovery” value. 435-P, WA-436-P, WA-437-P and PWA-
the North American onshore market “There have been moments when I 438-P.
during this period of low oil prices scratched my head and wondered if “Carnarvon recently released an Inde-
and global petroleum industry uncer- the discovery ever happened, but to be pendent Resource Estimate that focused
tainty stating it needed to concentrate honest I’m not worried because we’re in only on the opportunities covered by
on markets that were repeatable and such good shape,” Mr Cook said. the Phoenix 3D seismic data, this seis-
predictable. “Carnarvon’s opportunity to enter the mic data covers only 5 per cent of
Former Apache partner Carnarvon Bedout Sub basin came in 2009 when the permit area in which Carnarvon
Petroleum chief executive Adrian Cook the Global Financial Crisis was in full holds its interests. What this means
said in an open letter to the market swing and many of the major oil and in terms of the potential within the
that the decision by Apache to sell its gas players in the North West Shelf were remaining 95 per cent acreage holding
Australian assets was anticipated and focused, as they are now, on cutting is very encouraging, so much so that
foreshadowed for some time, as part back exploration expenditure,” he said. we are investing around AU$10 million
of their global strategy to refocus on “We have strengthened our balance to acquire new 3D and 2D seismic data
North American onshore production. sheet by selling our remaining Thailand over the remaining area.”
“Based on my recent discussions with interest in concessions L44/43, L33/43 The Carnarvon Petroleum chief ex-
Apache its business as usual for Car- and SW1A for around US$50 million ecutive said new 3D seismic data will
narvon Petroleum for the foreseeable ahead of drilling the Roc-1 well, and by provide significantly de-risked
future, Mr Cook said.

A A04 OIL & GAS ustral SIA MAY/JUNE 2015
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