Exploration Update: Largest Gas Discovery in Australia in Ten Years
Santos recently announced what is thought to be the largest gas discovery for ten years in the Carnarvon Basin, offshore north-west Australia. The Corvus-2 appraisal well in block WA-45-R, approximately 90 km north-west of Dampier, intersected a gross hydrocarbon interval of 638m, one of the largest columns ever discovered across the North West Shelf. Wireline logging confirmed 245m of net pay across the target reservoirs in the North Rankin and Mungaroo Formations, at depths between 3,360 and 3,998m.
Initial samples suggest that Corvus-2 shows a considerably higher condensate gas ratio than in Corvus-1, which was drilled several years ago and came into the Santos portfolio through the acquisition of Quadrant Energy. The company believes that the discovery has opened up a number of additional exploration opportunities in the region.
According to Wood Mackenzie, initial resource estimates are in the region of 2.5 Tcfg and 25 MMb condensate, making this the largest gas discovery in the basin since the Satyr-4 exploration well, drilled by Chevron in 2009.
Corvus, which lies in 63m water depth, is just 28 km from the Santos-owned Reindeer platform, which delivers gas to the Devil Creek domestic gas plant near Karratha, and about 62 km from a Varanus Island tie-in point, also owned by Santos, so commercialising this asset should be relatively easy.