Santos hits ‘important oil discovery’ with Pavo-1 close to Dorado
The Pavo-1 exploration effectively close to the Dorado discipline offshore Western Australia within the Bedout sub-basin has made a “important oil discovery” that has an estimated breakeven value at lower than $10 per barrel, operator Santos (ASX:STO) mentioned right this moment.
The effectively was drilled on the northern end result of the larger Pavo construction and encountered a 60-metre gross hydrocarbon column within the main Caley member reservoir goal. Wireline information has confirmed 46 metres of internet oil pay, with an oil-water contact intersected at 3,004 metres measured depth. Glorious reservoir high quality is interpreted from logs with 19% common porosity, permeabilities within the 100 to 1,000 millidarcy vary and hydrocarbon saturations averaging 80%, much like that encountered within the Dorado discipline, reported Santos.
Wireline logging operations to gather strain, pattern and rock information throughout the goal Caley reservoir to tell useful resource quantity estimates have been accomplished. Preliminary indications from rig website evaluation are of a light-weight candy oil (~52 levels API) with a low gas-oil ratio.
A 2C contingent useful resource for the northern end result is assessed at 43 million barrels of oil (mmbbl) gross. Santos’s 70% share in exploration allow WA-438-P would give it 30 mmbbl. Carnarvon Vitality (ASX:CVN) owns the remaining 30% curiosity.
The consequence at Pavo-1 additionally considerably de-risks the hydrocarbon bearing potential of the separate southern end result of the larger Pavo construction, added Santos. The southern end result has an extra greatest estimate P50 potential useful resource of 40 mmbbl gross. Likelihood of geologic success for the possible useful resource within the southern end result is assessed at 60%.
Santos chief government Kevin Gallagher described the Pavo discovery, 46 kilometres east of the Dorado discipline, as an awesome consequence that might add additional materials worth to the Dorado undertaking by way of a possible low-cost tie-back to the proposed Dorado facility.
World curiosity anticipated in Santos Dorado sale
“The Pavo-1 success is predicted to help a possible low-cost tie-back to the primary section of the proposed Dorado growth, with Pavo north having an estimated breakeven value of lower than US$10 per barrel, and future fuel manufacturing from the Bedout basin offering a supply of provide into our present home fuel infrastructure in Western Australia, Gallagher mentioned.
“It’s also very encouraging for the following exploration effectively within the present marketing campaign, Apus-1, which gives one other potential close by low-cost tie-in alternative to the Dorado growth,” he added.
“The Pavo-1 effectively consequence additionally proves the petroleum system within the basin is efficient over a larger space, de-risking quite a few close by low-cost alternatives,” mentioned Gallagher.
Carnarvon upbeat on Bedout basin after East Timor disappointment
The Pavo-1 effectively is being drilled utilizing the jack-up cell offshore drilling unit, Noble Tom Prosser, in a water depth of roughly 88 metres and is presently drilling forward to the ultimate deliberate complete depth of roughly 4,200 metres. The deepening of the effectively is concentrated on Early Triassic and Higher Permian stratigraphy not beforehand drilled within the basin and can present key info to de-risk a big variety of fuel and oil prospects within the Bedout Sub-basin.
As soon as wireline logging operations are accomplished at ultimate complete depth, the effectively might be plugged and completely decommissioned as deliberate, and the rig will transfer to the Apus-1 effectively location 20 kilometres south-west of the Pavo-1 effectively location.
Pavo-1 is positioned in petroleum allow WA-438-P (Santos 70 per cent and operator, Carnarvon Vitality 30 per cent). It’s roughly 160 kilometres north-northeast of Port Hedland and round 46 kilometres east of the Dorado discipline.