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LIVE

Saturday, 30 August, 2008, 11:20 GMT | more prices >>

Apache strikes at Julimar South-East

By Upstream staff

US independent Apache said it had logged 195 net feet of gas pay in its Julimar South-East-1 well on Western Australia’s North-West Shelf.

The company said in a statement the well was found in five intervals in the Triassic Mungaroo Sandstone.

The well lies on Apache’s 65%-operated WA-356-P permit, site of the driller’s previous Julimar-1, Julimar East-1, Brunello-1 and Brulimar-1 discoveries.

Kuwait’s Kufpec owns the remaining stake in the block.

The well, which has yet to be tested, was drilled in 502 feet of water about three kilometres from the Julimar-1 discovery site.

"Julimar SE-1 encountered both the stratigraphically oldest and structurally deepest gas pay in the field to date," said Steve Farris, Apache's chief executive officer.

Farris said two further wells were planned to be drilled on the block this year, tapping a field that could hold been 2 trioon and 4 trillion cubic feet of gas.

Apache also said its Halyard-1 well on Western Australian permit WA-13-L had flowed at up to 68 million cubic feet and 936 barrels of condensate during testing. The well is producing from 54 feet of perforations in a 91-foot net interval of gas pay in the Cretaceous Halyard sandstone.

The discovery lies in 366 feet of water on WA-13-L, the same block as Apache’s East Spar field.

Apache owns a 65% interest in the block with Australia’s Santos holding the remaining interest.

The company said it hoped to tie production in to a pipeline it operates 16 kilometres to the south, with gas being supplied to Australia’s domestic market through the Varanus Island processing and transportation hub.