Australian oil and gas company Western Gas has signed a formal contract with offshore drilling firm Valaris for the MS-1 semi-submersible rig to drill the Sasanof-1 exploration well.
The Sasanof-1 exploration well is in permit WA-519-P in Commonwealth waters about 207 km northwest of Onslow, Western Australia. Drilling is scheduled to begin in March/April 2022 following the rig relocating from nearby activities on the North West Shelf. Valaris recently said Eni had awarded the MS-1 rig a 90-day, four-well P&A contract offshore Australia, with a start-up in November.
According to Western Gas, the Sasanof Prospect is on-trend and updip of the liquids-rich, low CO2 Mentorc gas and condensate field and nearby the giant gas fields of Scarborough and Io-Jansz in the Carnarvon Basin. ERC Equipoise Ltd (ERCE) has determined Sasanof has an estimated 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P50), with a 32% Chance of Success.
The high case 3U Prospective Resource estimate is for 17.8 Tcf gas and 449 Million bbls condensate (P10).
Western Gas has also completed a transaction with Global Oil and Gas Limited under which Global Oil and Gas last week acquired 25% of Western Gas (519P) Pty Ltd, the holding company for WA-519-P permit containing the Sasanof prospect.
Under the deal, Global Oil and Gas will fund 50% of the cost of drilling the Sasanof-1 exploration well and issue Western Gas A$3 million of performance shares.
Sasanof-1 will be a vertical well and drilled to a total depth of approximately 2500 m in 1070 m of water, providing a low-cost, high-impact exploration well in a known and proven hydrocarbon province, Western Gas said. Drilling costs are estimated at US$20-25 million.
Will Barker, Western Gas Executive Director: "We are delighted to award Valaris this contract given its global expertise backed by its extensive knowledge of operating offshore Western Australia. With the drilling slot locked in with Valaris and GLV secured as a partner, we are now well on our way to delivering one of the highest impact wells to be drilled on the North West Shelf in decades.”