West Oil Awarded Exploration Permit Offshore Australia

West Oil announced recently that the Australian government has offered it an exploration permit in the Carnarvon Basin off the Western Australian coast and over the coming year will undertake 500 kilometers of seismic reprocessing on the three identified prospects.

The permit, Application WOO -56, lies 19 miles to the southeast of Apache and Woodside’s Legendre Oilfield, which recently began production, and 25 miles to the northeast of the Wandoo Oilfield.

West Oil will have a 50 percent interest in the permit and Bounty Oil & Gas NL will hold the other 50 percent.

The permit area is sparsely explored, with only two wells drilled over the last 20 years. There are three identified prospects in W00-56, Christine, Dolly and Miranda, and with low well costs, in the region of $2-3 million the prospects would be economic if oil was discovered. Christine, Dolly and Miranda have potential reserves of 21, 13 and 26 million barrels respectively. Reprocessing the existing seismic with particular emphasis on these shallow prospects will help to work them up to drillable status.

Water depths at W00-56 are modest, ranging from 165 to 230 feet and target depths are very shallow, averaging 2,300 feet. The Lewis Trough, which contains the main oil source kitchen, has been shown to produce hydrocarbons which migrate to the east and west. To the west the area sources the Wanaea/Cossack, Lambert/Hermes and Angel Fields and to the east the Legendre, Wandoo and Stag Fields. West Oil will fast -track its six year commitment on W00-56.