Australian oil and gas firm Cooper Energy has won the rights for pursuing hydrocarbons in the VIC/P72 exploration block in the Gippsland Basin, offshore Victoria.
Image: Map showing the location of the VIC/P72 exploration block. Photo: courtesy of Cooper Energy Limited.
VIC/P72 adjoins Cooper Energy’s VIC/L21 license which contains the depleted Patricia-Baleen gas field and its associated subsea production infrastructure.
The new exploration block is located in a proven gas and oil province, said Cooper Energy managing director David Maxwell. Surrounded by producing fields, VIC/L21 is believed to have identified prospects and has been covered by high quality 3D seismic data.
Cooper Energy said that the new exploration permit is also located near a number of gas and oil fields operated by Esso such as Snapper, Marlin, Sunfish and Sweetlips and the SGH Energy-operated Longtom gas field.
Maxwell said: “From a commercial perspective, the permit is very competitively located, being close to market and the company’s gas production infrastructure at Patricia Baleen which is connected to the Orbost Gas Processing Plant.
“The offshore Gippsland Basin is a key supply source for south-east Australian gas demand and we expect that discoveries in VIC/P72 will have excellent prospects for rapid commercialisation through the company’s existing infrastructure”.
Cooper Energy has secured the permit for VIC/P72 for a six-year-term. The company said that the first three years will see 3D seismic reprocessing and studies carried out for an area of 260km2, in addition to drilling of an exploration well.
Cooper Energy, which holds 100% stake in the new exploratory block in the Gippsland Basin, said that it may look to bring in joint venture partners depending on value and risk management considerations.
Last week, the Australian firm completed drilling at the Casino Henry gas project in offshore Otway Basin in Victoria. Cooper Energy, which holds 50% stake in the offshore gas project, said that the Diamond Offshore Ocean Monarch drill rig has completed drilling of the Casino-5 production well and is set to leave the field.
In another development, the company has agreed to raise its stake in the Minerva gas plant in the onshore Otway Basin to 50% by buying a stake of 40% from BHP Billiton for an undisclosed price.