Apache Spuds Kilauea 1 Offshore Australia

Apache will spud the Kilauea 1 well located offshore Australia in Carnarvon Basin permit WA-257-P this week. The Ensco-56 jackup will be used to drill the well.

This is one of a number of significant, high impact volume prospects, delineated by 3D seismic coverage over the south-eastern portion of the permit area. Potential of Kilauea ranges from; a mean case of 419 billion cubic feet of gas with a possible oil leg of 10 million barrels of oil, to a P10 case of 938 billion cubic feet of gas with a possible oil leg of 26 million barrel of oil, if hydrocarbons are present in the prospect. The proximity to existing and planned production infrastructure will facilitate timely development of a discovery.

Kilauea is a similar North Rankin – Mungaroo Formation buttress trap located in the same fault block as the on trend Corvus gas discovery in eastern adjacent WA-246-P. Corvus 1 intersected two separate gas columns differentiated by pressure within the Lower Jurassic North Rankin Formation and Triassic Mungaroo Formation. The upper of the two gas columns had a 423-meter extent from top porosity in the North Rankin Formation whilst the lower intersected Intra-Mungaroo column was open, ie being 64 meters of gas above the final depth of the well. A flat spot is visible on seismic in Kilauea which is coincident with the gas-water contact of the upper North Rankin gas column in Corvus.

Significant hydrocarbon shows were also encountered at Mid to Upper Jurassic or lowermost Cretaceous levels in Corvus 1 that are respectively indicative of paleo-oil accumulations or significant oil migration through structure. Notwithstanding Kilauea is on the spill chain from Corvus, it is likely to have been also charged with hydrocarbons from a separate source cell which is less mature than that charging Corvus giving rise to the strong possibility that there will be liquid entrapment as accompanying condensate with gas or an oil leg accompanying gas in the prospect. Quality reservoir to Corvus 1 is also expected in the prospect given its location away from the Rosemary Fault and its shallower depth.

Because of the Operator’s extensive knowledge base of the targeted reservoir the well may not be flow tested in the event of a discovery, but will be evaluated by wireline and then plugged and abandoned. Information from both the geological and geophysical evaluation of the reservoirs will be adequate to determine the significance of any hydrocarbons encountered to make a decision on future operations on the prospect. This exploration methodology has become best practice for offshore exploration in the Carnarvon Basin.

Participants in Kilauea 1 are Apache as operator with 40.25%; Kupfec Australia with 30%; Wandoo Petroleum with 22.25% and Sun Resources with the remaining 7.50%.