OBL moves to study development options for Cyrano offshore Australia

Following successful re-award, of Retention Lease R3/R1 offshore Carnarvon basin Western Australia, Oil Basins Ltd. has outlined the results of a DU-EL Drilling Services Pty Ltd scoping study on development options for the Cyrano oil field on the lease.

Offshore staff

MELBOURNE, Australia – Following successful re-award, of Retention Lease R3/R1 offshore Carnarvon basin Western Australia, Oil Basins Ltd. has outlined the results of a DU-EL Drilling Services Pty Ltd scoping study on development options for the Cyrano oil field on the lease.

Recognizing that the field presents as a marginal field up until this point in time, the scope of work and study parameters included the following: 

• An assessment of the challenges presented by the Cyrano oil field 
• An overview of the previous operator's engineering studies and economics (including the OBL R3 Renewal Application) and a review of the OBL commissioned RPS Energy Expert Report 
• A review of the latest development technologies, the suitability of modern completion systems and pumping equipment and, based upon DU-EL's in-house offshore experience in successfully designing and operating similar small marginal offshore field developments in SE Asia.

The DU-EL report, which builds on earlier work by RPS Energy, concluded the following: 

• A “new” rapid development EWT concept (subject to acceptable reservoir risk criteria) may improve economics to allow development of Cyrano within a risked capital in the $30 million range, and with expected capital recovery breakeven within 12 months 
• Reservoir risk and performance of the tight Mardie Greensand flowing moderately low pressure viscous heavy biodegraded crude remains the real unknown 
• Detailed reservoir simulation studies (including orientation of horizontal wells / use of multilaterals and contingent use of either vertical or horizontal injectors - gas and water) are essential to further assess the potential adoption of ESPCP completion technologies and overall recovery factors and reservoir performance characteristics.

In parallel with future work, OBL is seeking farm-in partners to accelerate the Cyrano extended well test development studies. The advancing of the rapid EWT development concept will be subject to the approvals of the Western Australia Department of Mines and petroleum and all stakeholders.

10/26/2011

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