Partners sell production from Yolla field off Australia

Australian Worldwide Exploration Ltd. and CalEnergy Gas (UK) Ltd. have agreed to sell gas from the yet-to-be-developed Yolla field in the Bass basin off northern Tasmania to Origin Energy Retail Ltd. Development of the field and related pipeline and processing facilties will cost $400 million (Aus.).


MELBOURNE, Mar. 23�Australian Worldwide Exploration Ltd. and CalEnergy Gas (UK) Ltd. have agreed to sell gas from the yet-to-be-developed Yolla field 150 km off northern Tasmania to Origin Energy Retail Ltd.

Associated company Origin Energy Resources Ltd., a partner in the Bass basin field, would buy AWE's 30.5% and CalEnergy's 20% shares of the 260 PJ of Yolla gas over 15 years. The gas would go into the Victorian grid.

The project would produce about 13.5 million bbl of condensate and 1,000 kilotonnes of LPG during the 15 years.

Gas and liquids would be landed in eastern Victoria via a multiphase pipeline and processed.

AWE said construction on the BassGas project would start in 2002 and be completed in early 2004. Costs were $400 million (Aus.) for drilling, a Yolla platform, offshore and onshore pipelines, and a gas plant. The smaller White Ibis field on permit T/18P would be tied in later.

Yolla gas reserves are 309 PJ and White Ibis has 50 PJ. The T/18P permit has two undrilled prospects (Trefoil and Chappel) that may add reserves.

AWE has 30.5% of license T/RL1 and 35.1% of permit T/18P. CalEnergy holds 20% and 23.5% respectively, while Origin Energy has 30.5% and 41.4%, respectively. Other participants have the remaining 19% of T/RL1.

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