Drilling equipment and bulk materials are being prepared ahead of rig mobilisation on May 16 at the Valaris MS-1 rig anchored in Western Australia’s Dampier outer harbour.

Global Oil & Gas (ASX:GLV) believes the MS-1 will take around four days to reach the Sasanof prospect, around 200km northwest of Onslow.

Once this has been done, the rig and support vessels will kick off drilling works at the Sasanof-1 exploration well around May 24 down to a depth of 2,500m in 1,070m of water.

The Solstad Far Senator AHSV, Maersk Mover AHSV and GO Spica PSV support vessels will begin logistical and drilling support operations on May 9.

Known discoveries in the neighbourhood

Executive director Patric Glovac says the project is in the right neighbourhood, as it’s on trend and up-dip of the Mentorc Gas and Condensate Field and near the Giant Gas Fields of Scarborough and Io-Jansz gas fields in the prolific Carnarvon Basin.

“We’ve agreed to farm-in 25% in US$10 million – so that’s about US$20-25 million all in cost to drill the well,” he said.

“All the environmental approvals are in place, and it’s drill ready and it’s in the right neighbourhood.

“It’s offshore, we’ve got about 17 TCF targets, and in that region our neighbours are Gorgon, Pluto, Scarborough and a BHP/Woodside field – that’s probably the closest one to us.

“There’s known discoveries, known production and that’s the opportunity for us.”

Among biggest wells ever drilled by a junior

“This would be one of the biggest oil and gas wells drilled in Australia by a junior in the last 20 or 30 years,” Glovac said.

“The upside is huge. It’s permitted, it’s significantly de-risked, all the capital’s been raised, and it’s fully funded.

“At this point, the only risk to it is exploration success.”

 

 

 

This article was developed in collaboration with Global Oil & Gas, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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