Woollybutt Partners Give Green Light to South Lobe Development

The Woollybutt Joint Venture has formally agreed to develop the Woollybutt Oil Field South Lobe. The Woollybutt Oil Field is located in the WA-25-L Production License in the Carnarvon Basin offshore Australia and contains two separate lobes. The Woollybutt South Lobe is located approximately 5 kilometers south of the currently producing Woollybutt North Lobe.

The Woollybutt South development incorporates the tie-back of up to two horizontal wells to the existing leased FPSO "Four Vanguard" via sub-sea pipeline. The planned wells are re-entry of the Woollybutt-4 well and an appraisal well, Woollybutt-6. The capital budget for the development is approximately A$180 million.

The Woollybutt Joint Venture has authorized all required expenditures and the Operator has secured contracts for the majority of the project including:

  • Drilling and completion of Woollybutt-4 horizontal development well and Woollybutt-6 appraisal well;
  • FPSO modifications;
  • Sub-sea Xmas trees, flowlines, manifolds and control systems;
  • Installation and transportation of necessary equipment.

Drilling is expected to commence in mid 2007 with first production from the Woollybutt South Lobe anticipated in early 2008.

The Woollybutt South Lobe was originally discovered by the Woollybutt-3A well in 1999 and subsequently appraised by the Woollybutt-4 and Woollybutt-5A wells.

The Top Barrow Sandstone reservoir contains oil of similar quality to the Woollybutt North Lobe that is currently on production via the Four Vanguard FPSO, but is interpreted to be a separate oil accumulation.

The Woollybutt-6 well will be drilled between the Woollybutt-4 and -5 wells. If successful the Woollybutt-6 well will be completed in a horizontal hole and tied back in a similar manner to the Woollybutt-4 development well.

With Final Investment Decision ("FID") in place Tap will now book its equity share (15%) of an additional 10 million bbls of estimated reserves at a Proved and Probable ("2P") confidence level for the combined Woollybutt North and South Lobes. These reserves consist of around 7 million bbls directly attributed to the Woollybutt-4 well and a further 3 million bbls as a result of the extended life of the combined North and South Lobe development. The Woollybutt-6 appraisal well may add further reserves.

The Woollybutt-4 development well is expected to increase the Woollybutt Oil Field production rates by around 10,000 bopd, and also substantially increase field life. The FPSO contract runs until 2009 with optional extensions until 2013.

To date the Woollybutt Oil Field has produced around 26.5 million bbls and is anticipated to produce 40 million bbls at a 2P confidence level. The field is currently producing at around 11,000 bopd.

WA-25- L Joint Venture participants are Eni Australia as operator with 65%; Tap West Pty Ltd with 15% and Mobil Australia Resoruce with 20%.

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