Apache drills first significant gas from Emperor Formation

Apache Corp. has reported the results of the first drill-stem test (DST) on the Longtom-2 well in the offshore Gippsland basin of Victoria in the Bass Strait.

Apache Corp. has reported the results of the first drill-stem test (DST) on the Longtom-2 well in the offshore Gippsland basin of Victoria in the Bass Strait. The Longtom-2 well flowed at 18-19 MMcf/d of gas through a 1-in. choke over an 11 hr period with wellhead pressure at the end of the test at approximately 965 psi. Apache tested the Longtom-2 well over the interval 2,184.0-2,192.5 m and 2,212.5-2,243.5 m. This interval will be isolated and the well prepared for DST No. 2. The well also flowed gas with a condensate-to-gas ratio of 3 bbl/MMcf. VIC/P54 covers 155,676 gross acres and Australian-Canadian Oil Royalties Ltd. has a 0.05% ORRI under all this acreage.

This successful test is a major discovery in the Gippsland basin. It represents the first significant gas flow from the Emperor Formation. The majority of the Gippsland basin wells have been completed in the upper Latrobe Formation. In excess of 4 Bbbl of oil/condensate and 12 tcf gas reserves have been discovered in the basin since exploration drilling began in 1964, with remaining reserves estimated at 600 MMbbl of oil and 5 tcf of gas.

Despite its long history of extensive exploration, many parts of the basin areas and depths are still poorly understood. For such a prolific basin, the Gippsland basin is relatively unexplored and ACOR's management believes there is still considerable potential for significant discoveries like the Longtom-2.

12/06/04

More in Geosciences