Apache to Develop Balnaves Discoveries

The three appraisal wells drilling the Balnaves-1 discovery in License WA-356-P offshore Western Australia have kicked off development planning by Apache Corporation's subsidiary, Apache Julimar. The Balnaves field is an oil accumulation in the Mungaroo formation in a separate reservoir beneath the large gas reservoirs of the Brunello gas field.

The recently drilled Balnaves-3 appraisal well test-flowed 9,076 barrels of oil and 13 MMcf/d of natural gas from a 16-foot (5-meter) perforated section, confirming good reservoir deliverability, stated Apache. Drilled in 2009 by the Stena Clyde semisub, the Balnaves-1 discovery well is part of a series of gas exploration and appraisal wells in the Julimar-Brunello complex. The discovery well encountered 64 feet (20 meters) of net oil pay in the B20 sand – a light, high-quality oil accumulation at a depth of 10,600 to 10,700 feet (3,231 to 3,261 meters). Balnaves-2 was a sidetrack from the discovery, and Balnaves-4 was a sidetrack from Balnaves-3.

The Julimar and Brunello gas fields will be developed to provide additional gas for the Wheatstone liquefied natural gas project operated by Chevron. Apache Julimar will operate the design and construction phases of the WA-356-P upstream part of the Wheatstone project. A final investment decision on the first phase of the project is slated for 2011, after the FEED is completed.

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