Global Oil and Gas says its drill rig will be mobilised to spud the Sasanof well in the North West Shelf of WA in mid-May.

The company has a 25% stake in the project – which has a 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P501).

Western Gas Corporation and Prominence Energy hold 62.5% and 12.5% respectively, with Global Oil and Gas (ASX:GLV) funding 50% of the cost of drilling.

The Sasanof-1 exploration well will be drilled vertically to a total depth of 2500 m in 1070m of water and is expected to take around 26 days from the date of rig mobilisation from Dampier port.

Independent consulting ground ERCE has given the project a 32% geological chance of success.

Known discoveries in the neighbourhood

Executive director Patric Glovac says the project is in the right neighbourhood, as it’s on trend and updip of the Mentorc Gas and Condensate Field and nearby 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.”

Global Oil & Gas
Pic: Regional location of Sasanof Prospect and surrounding gas fields.

Could be perfect timing for a new discovery

Shore based preparations are now underway to ready equipment for the drilling campaign, with all long lead items acquired, key consumables ordered and ready for delivery.

Glovac flagged that with a lot of O&G companies there’s a long lead time – almost 6-8 months – before they spud a well.

“If you invest in us, within six weeks you’re getting a result on a multi-TCF target, which could be company making,” he said.

“It’s offshore Australia, so you’ve got less sovereign risk, there’s a known market to sell the product into, there’s existing infrastructure.

“And you’ve got oil and gas prices around the world at record levels – it doesn’t seem to be slowing down – so I think the timing is perfect for an Australian oil and gas discovery.”

 

 

 

This article was developed in collaboration with Global Oil and 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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