Taunton-3 Sidetrack Logs Pay

The Taunton-3/L1 well has been sidetracked from the Taunton-3 a well to target a bottom hole location 430 meters to the south of the well and to a total depth of 1,534 meters measured depth. The well is located offshore Australia 5 kilometers west of Airlie Island. Log analysis indicates that an oil reservoir of 6 meters was intersected within the Taunton sand 4 meters higher than that at Taunton-3 with a similar bottom seal and with no apparent oil/water contact evident on logs.

The Taunton-3/L1 sidetrack well has confirmed a further extension of the Taunton Oil Field. The well encountered the reservoir higher than predicted at this location and this will require re-mapping of the seismic data to upgrade reserves. No oil/water contact is evident from log data and it is interpreted that an additional extension of the oil column may extend downdip to the east.

Flow rates from the reservoir were established by testing of the Taunton-2 well which was flowed at a rate of 3,000 barrels of oil per day. No further testing of the wells is required and it is now planned to plug and abandon the Taunton-3/L1 and Taunton-3 wells.

Initial estimates indicate that sufficient oil reserves have been proved up by the Taunton-3 and Taunton-3/L1 appraisal wells to confirm commerciality of the Taunton Oil Field.

It is anticipated that once all the new well information has been incorporated into the interpretation, a development decision will be made rapidly, targeting first oil production in 2004. Development of the field will comprise a platform and short pipeline to the Airlie Island oil facilities 5 kilometers to the east, establishing a new oil production hub for Tap.

The Ensco-53 has now been mobilized to drill the next exploration well Hyssop-1 in TP/7. Participants in the Taunton-3 well are: Apache as operator with 80%; Pan Pacific with 10% and Tap Oil with the remaining 10%.