Australian independent Santos is busy doing the preparatory work that will enable it to start a campaign of oil and gas exploration drilling in the Bonaparte basin off northern Australia.
Santos has interests in a portfolio of offshore exploration permits in the area, and has been doing geotechnical, geological and geophysical work there over the last few years.
Two major 3D seismic campaigns operated by Santos have been completed — Fishburn and Bethany — while a third called Beehive is about to get under way.
Santos also participated in the Gulpener 2D survey operated by Lattice Energy.
“Each of these surveys are contributing to the building of a diverse exploration inventory ahead of wildcat drilling currently planned to commence around 2020,” said Santos.
The company previously outlined its strategy in Northern Australia as a “systematic exploration inventory build around all discovered resource hubs”.
Santos has interests in some major existing discoveries, including Bayu-Undan, Barossa-Caldita and Petrel-Tern and Frigate.
The Fishburn 3D survey — acquired using the seismic vessel Polarcus Naila — comprised 595 square kilometres of 3D shot over Block WA-459-P, which is located just west of Petrel-Tern and Frigate. Water depths in the Fishburn area are between 50 and 100 metres.
It is understood the survey completed Santos’ work commitments in WA-459-P, which it owns on a 100% basis.
The earlier Gulpener 2D survey covered 1064 kilometres in Block NT/P84 owned by Santos and operator Lattice Energy.
Water depths were also shallow at a maximum of 70 metres, and the joint venture partners have a work programme commitment to drill an initial exploration well within the next two years.
The recently-completed Bethany 3D survey was very large, covering 4031 square kilometres in Blocks NT/P85 and NT/P82.
Santos is the operator of NT/P85 with Lattice as partner — the pair have a current commitment to drill an exploration well before October 2019.
There is some uncertainty about who is the owner of Block NT/P82 — the original permit holder was Magellan Petroleum, which was acquired by US company Tellurian.
Tellurian said recently it had agreed to transfer its Australian exploration permit to a third party for US$200,000 in cash and the release of US$1.3 million in liabilities incurred in connection with a seismic survey.
Meanwhile, Santos said that with the Bethany survey now complete, the Polarcus Naila will move on to the Beehive 3D survey “which is being acquired to mature a new exploration play in the southern Bonaparte basin”.
The Beehive shallow-water survey is being funded by Santos and French energy giant Total on behalf of the permit holder Melbana Energy. Santos and Total entered into an agreement with Melbana in December 20017 to fund and operate the 600-square-
kilometre survey in exchange for farm-in options to 80% of Block WA-488-P.
Melbana reckons the Beehive prospect is one of the largest undrilled hydrocarbon structures in Australia.
“It is a carboniferous-age 180-square-kilometre isolated carbonate build-up with 400 metres of mapped vertical relief, analogous to the giant Tengiz field in the Caspian basin,” said Melbana. “It is located in 40 metres water depth suitable for a jack-up rig, within 75 kilometres of shore and developable by either FPSO or pipeline to existing infrastructure. This play type is new and undrilled in the Bonaparte basin with no wells having been drilled to this depth in the basin,” added the junior explorer.
When Melbana was awarded the block in May 2013, it made a commitment to drill two exploration wells - one before September 2019 and the other by September 2022.