Woodside Says Neptune Sidetrack Wells Extend Field

Woodside Petroleum Ltd. reports that operations on the Neptune-5 Sidetrack 1 and Sidetrack 2 appraisal wells, in the deepwater Gulf of Mexico, Atwater Valley Block 574, are being concluded. The sidetracks were drilled following positive results in the original Neptune-5 well which encountered a gross oil column of approximately 1,200 feet, with more than 500 feet of net oil pay.

Sidetrack 1 was drilled to a target down-structure from the original Neptune-5 location. The well penetrated an oil water contact and extended the gross oil column by approximately 100 feet. Good reservoir quality sands were encountered and the well was plugged back to enable drilling of a second sidetrack.

Sidetrack 2 was drilled to an up-structure location and encountered a net oil column that Woodside estimates to be approximately 120 feet. The oil recovered was of similar quality to the oil encountered in the original Neptune-5 well. Operations are currently being conducted to temporarily abandon the well as a potential producer in the event that Neptune is shown to be commercially viable.

The temporary abandonment of Sidetrack 2 concludes the current appraisal operations on the Neptune Field. The results of all three wells have been very encouraging and will be integrated with field development studies.

The Neptune discovery is located in the Atwater Foldbelt region of the Central Gulf of Mexico. This area includes the Mad Dog and Atlantis fields, which are currently being developed by other joint ventures. Woodside Energy (USA) Inc., a wholly owned subsidiary of Woodside Petroleum Ltd., has a 20% working interest in the leases which contain the Neptune Field.