Woodside Reports Higher Contingent Resource from 2 Myanmar Discoveries

Australia's Woodside Petroleum Ltd. reported Friday an increase in its best estimate contingent resource (2C) by 83 million barrels of oil equivalent (MMboe) to 4,481 MMboe following the announcement of two gas discoveries offshore Myanmar in first quarter 2016 (1Q 2016).

Woodside announced the discovery of 105 foot (32 meter) net gas pay (increased from an earlier 49 foot or 15 meter net gas pay estimate) in the Block A-6 Shwe Yee Htun-1 exploration well and 203 feet or 62 meter net gas pay in the Block AD-7 Thalin-1A exploration well.

The contingent resource estimate is based on technical evaluations of subsurface data and wireline logging results from the two wells.

Woodside CEO Peter Coleman said analysis of the exploratory well data confirms the development potential of both discoveries, with further appraisal and exploration of four to seven wells planned to commence in 1Q 2017.

“The logical development option for the Thalin-1A discovery is a tieback to the nearby Shwe Field,” Coleman said. “Our strategy is to fully appraise the discovery in one campaign, thereby facilitating concept select in 2017.”

The Shwe Yee Htun-1 discovery has both tieback and standalone development options.

“We recognize additional exploration potential in areas immediately adjacent to the discovery and will target these to ensure any development concept is commensurate with the full block potential,” Coleman said.

The company’s early success in Myanmar establishes the petroleum system credentials of the Rakhine Basin, where Woodside is one of the largest acreage holders, with interests in six blocks.

Reserves and Resources as at Dec. 31, 2015:

The Woodside reserves and resources presented in the Annual Report 2015 will increase as follows:

Best Estimate Contingent Resource (2C) increase by 83 MMboe to 4,481 MMboe

Shwe Yee Htun (gas) – reported according to Woodside’s economic interest

  1. At the date of this release, the Shwe Yee Htun field contingent resource (2C) is 895 billion cubic feet (Bcf) dry recoverable gross gas, of which Woodside’s net economic interest is 209 Bcf, at a best estimate (P50) confidence level using probabilistic methods and a deterministic development scenario (notionally a tie back to the Yadana Gas Processing facility utilising existing technology)
  2. Woodside holds a 40 percent interest in Block A-6 held under a production sharing contract with the Myanmar government. The ultimate net economic interest to Woodside is highly dependent on realized gas prices, Government participation rights, Government share of profit and royalties in the production sharing contract and the outcome of future commercial arrangements
  3. The contingent resource estimate is based on technical evaluation of subsurface data and wireline logging results from the Shwe Yee Htun-1 exploration well
  4. An appraisal drilling and testing program is planned for 2017 to acquire additional volumetric and reservoir data which, together with future commercial arrangements, represent the key uncertainties that prevent the resource from being booked as reserves.

Thalin (gas) – reported according to Woodside’s economic interest

  1. At the date of this release, the Thalin field contingent resource (2C) is 1,510 Bcf dry recoverable gross gas of which Woodside’s net economic interest is 260 Bcf, at a best estimate (P50) confidence level using probabilistic methods and a deterministic development scenario (notionally a tie back to the Shwe Central Processing Platform utilising existing technology)
  2. Woodside holds a 40 percent interest in Block AD-7 held under a production sharing contract with the Myanmar government. The ultimate net economic interest to Woodside is highly dependent on realized gas prices, Government participation rights, Government share of profit and royalties in the production sharing contract and the outcome of future commercial arrangements
  3. The contingent resource estimate is based on technical evaluation of subsurface data and wireline logging results from the Thalin-1A exploration well
  4. An appraisal drilling and testing program is planned for 2017 to acquire additional volumetric and reservoir data which, together with future commercial arrangements, represent the key uncertainties that prevent the resource from being booked as reserves

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