Apache upbeat about Western Australia oil find

: Crude oil
14/08/19

US independent Apache has discovered up to a potential 300mn bl of oil in place offshore Western Australia, in what could be country's largest oil find for 30 years.

The find is much larger than the average 60mn bl oil finds that Australia has recorded in recent years, but only a small amount of the oil will be economically recoverable. The 300mn bl in place is based on an estimate of a tenth percentile probability, the company said. Apache plans to follow up its success on the Phoenix South-1 well with further drilling in the Canning basin, including the adjacent Roc prospect.

"The oil and reservoir quality we have seen point to a commercial discovery. If these results are borne out by further appraisal drilling, Phoenix South may represent a new oil province for Australia," Apache's chief operating officer Thomas Voytovich said.

Apache has a 40pc interest and operatorship of WA-435-P and the adjacent permit WA-437-P, where Phoenix South and Roc are located. Australian independents Carnarvon Petroleum and Finder Exploration have 20pc each, as does Japan's JX Nippon. Apache also has exercised its option to acquire 40pc interest and operatorship of two more nearby permits, WA-436-P and WA-438-P, taking it total position in the area to more than 20,000km².

Apache in previous years has warned that it would look closely at the economics of Australian upstream developments because of rising costs. Its 30,000 b/d Balnaves oil field in the Carnarvon basin is due to start up this year, but the project only just cleared investment hurdles when it was originally sanctioned in 2011.

Soaring costs have made Australia's offshore oil fields more marginal, reducing the prospects of new tie-back agreements to existing projects and increasing the country's reliance on oil imports. Costs had been escalating fastest in projects off the northwest coast of Australia, from where much of the replacement oil had been expected to be delivered as the basins on the east coast are depleted.

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