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Sunday, 20 July, 2008, 02:40 GMT | more prices >>

Apache kicks off Gippsland hunt

By Russell Searancke

US independent Apache is about to start its aggressive eight-well exploration programme in south-east Australia's Gippsland basin with the spudding of the Wasabi-1 well.

Apache is using Seadrill's brand new jack-up West Triton for three wells; the first being Wasabi-1, the company said recently. The West Triton will also to be used by four other operators: 3D Oil, Beach Petroleum, Nexus Energy and Oilex.

Apache also has slots on the Diamond Offshore semi-submersible Ocean Patriot, due to arrive in Australia in April.

The US operator has taken up a significant acreage position in the Gippsland basin, and has talked up the oil potential in the area, which is dominated by the ExxonMobil and BHP Billiton joint venture that has been producing oil and gas in the Gippsland since 1969.

Apache has said previously it "thinks this is a very good neighbourhood to be in" and said 3D seismic data has shown "new play types not looked at before in the basin, as well as leads that represent plays that have worked".

Apache is planning to drill 52 offshore wells in Australia this year, including 32 exploration wells.