Karoon Gas Australia has announced that a semi-submersible drilling rig has been contracted to drill the first well for Apache and Karoon in the northern Carnarvon Basin exploration permit WA 482-P, off Australia.
According to Karoon, the Levitt-1 exploration well is expected to spud during May 2015.
Apache Northwest Pty Ltd, the Operator of the permit, has contracted the Diamond Offshore semi-submersible drilling rig, “Ocean America”, to drill Levitt-1.
Subsequent to Karoon’s farm-out of a 50% equity interest in the permit to Apache during May 2014, Apache will be responsible for 90% of the cost of the Levitt-1 exploration well up to a total well cost of US$70 million. The net to Karoon dry hole cost is estimated to be approximately US$5 million.
The Levitt Prospect
The drilling of the Levitt prospect represents a significant milestone for Karoon, the company said in the statement. It is the first exploration target to be drilled by the joint venture in this new exploration permit, covering 13,539 square kilometres. Exploration in the permit will evaluate new plays in the northern part of the Carnarvon Basin, with Levitt-1 to be the first well in what is expected to be an ongoing exploration program over a number of years.
The permit contains a multi-billion barrel prospective oil resource in six prospects identified in the Canning 3D seismic survey area which covers a third of the permit area. Additional prospectivity over the permit area is expected to be identified through the interpretation of existing 2D and 3D seismic data and the 5,256 square kilometre Capreolus 3D seismic survey program currently being acquired, Karoon said.
The Levitt-1 exploration well is targeting an unrisked gross prospective resource best estimate of 220 mmbbls in the Legendre and North Rankin formations. The well is positioned to receive migrating hydrocarbons from the oil mature Early Jurassic source kitchen located in the central and eastern side of the permit.