Apache to Drill Back-to-Back wells in WA-261-P in Early 2005

At a recent Technical Meeting called by Apache, Operator of WA-261-P, participants were advised of proposed back-to-back drilling in the permit of a new prospect, Gats, with the Vesta Prospect in late January 2005 when the ENSCO-56 drilling rig returns to service with Apache.

The Gats Prospect is a structural-stratigraphic trap that in part overlaps (20%) the northern adjacent Stag Oilfield Production License 15-L and WA-209-P. Prospect potential ranges from 17.1 (mean) to 36.9 (P10) million barrels of oil recoverable. The favorable attribute of the prospect is the fact that the "Greater Gats" Prospect closure (P2) encompasses the small Antler hydrocarbon accumulation structure in 15-L. Antler 1 intersected 2.4 meters of gas sitting on a 1.4 meter oil column in a good 16.3 meter thick mid M australis Sand reservoir. Oil/water contact was at 705.5 meters AHD in the structure. The Gats well site is only 10 kilometers from the central facilities of the Stag Oilfield and if the well is successful the field would be tied back to Stag Oilfield facility.

As previously advised the Vesta Prospect is a shallow buttress-stratigraphic trap lying 25 kilometers west southwest of the Stag Oilfield. The C halosa sand of the Athol Formation is targeted in the trap. Prospect potential ranges from 11.5 (mean) to 23.2 (P10) million barrels of oil recoverable. If drilling is successful the nearby Chamois oil accumulation 2.4 (mean) to 3.9 (P10) million barrels of oil recoverable would also be included in a development tie back to the Stag Oil Field.

Equities have yet to be determined in the drilling of both prospects as the previous Sole Risk Notice for drilling of a non commitment well on the Vesta Prospect has expired. Strike Oil NL was previously not a participant in the evaluation of the Vesta Prospect, but still retained its interest in the surrounding permit. The situation of equities in the drilling of both prospects via non commitment wells will be advised when a decision on participation in the back-to-back drilling has been made by permit participants.