Closely watched exploration well off W. Australia finds no hydrocarbons (updated)
06/06/2022 01:50
(Adds well details, partners, shares reaction)
By Sonali Paul
MELBOURNE, June 6 (Reuters) - Western Gas said on Monday its
Sasanof-1 exploration well off Western Australia found no
hydrocarbons, marking a big disappointment for one of the most
closely watched drilling campaigns in Australia this year.
Ahead of drilling, the Sasanof prospect had been estimated
by independent firm ERC Equipoise to hold a resource of 7.2
trillion cubic feet of gas and 176 million barrels of
condensate.
Energy consultants Wood Mackenzie and EnergyQuest had
identified the Sasanof-1 well as one to watch this year.
Privately owned Western Gas had called it "one of the most
anticipated exploration wells on the North West Shelf in many
years".
"Obviously this is a disappointing result," Western Gas
Executive Director Will Barker said in a statement without
disclosing any plans for further wells.
Western Gas's partners in the Sasanof-1 well are small oil
and gas explorers Global Oil & Gas Ltd GLV.AX , Clontarf Energy
Plc CLON.L and Prominence Energy Ltd PRM.AX .
Global Oil & Gas' shares plummeted as much as 81% and
Prominence slumped 75% in Sydney after the drilling result was
announced.
The exploration well cost between $20 million and $25
million, a Western Gas spokesperson said.
(Reporting by Sonali Paul; Editing by Tom Hogue and Kenneth
Maxwell)
((Sonali.Paul@thomsonreuters.com; +61 407 119 523;))