BPH Energy is a step closer to drilling its offshore New South Wales well after receiving the basis of well design report for the Baleen well program.
Last month the company appointed a drilling manager under the preliminary well services agreement with Add Energy. This was in relation to the preparation for drilling the Baleen well to undertake a phased approach to provide technical support.
The scope of work included a review of exisiting data and latest geological prognoses for the well, documentation of the subsurface well design envelope and compilation of a preliminary well design, project costs and schedule to complete the Baleen-1 exploration well.
The report received from Add Energy documents the basis of well design and rationale for design of the well, the well cost compilation and the project schedule.
The report addresses the revised drill target on the Baleen prospect initially announced with total depth of 2150m on the seismic data line B4-18.
Advent now intends, subject to approvals and funding, to undertake keeping drilling and to also evaluate the offshore Sydney Basin for carbon sequestration.
As a result, the well to target early Permians sandstones for both hydrocarbon and carbon sequestration potential has been revised to a total depth of 3150m.
The basis of well design report will now be assessed.
Advent, through Asset, holds an 85 per cent interest in the project and is operator of the permit, with Bounty Oil and Gas holding the remaining 15 per cent. BPH holds a 22.6 per cent interest in Advent Energy.
The PEP11 project lies in the offshore Sydney Basin, adjacent to the NSW coast and extends from Sydney to Newcastle in the Commonwealth waters.
In 2018, Advent and JV partner Bounty Oil and Gas completed a 200-line km 2D seismic survey of PEP11 to assist in the future drilling of a target at Baleen, approximately 30km southeast of Newcastle.
BPH reported last year that PEP 11 is adjacent to the largest domestic gas market in Australia and is a high impacts exploration project.
“PEP 11 remains one of the most significant untested gas plays in Australia,” BPH said.
“The PEP 11 joint venture has demonstrated considerable gas generation and migration in the offshore Sydney Basin, with the previously observed mapped prospects and leads being highly prospective for gas.”
The company added that due to the gas supply crisis on the east coast of Australia it has created a market opportunity to raise funding to drill with the objective of developing the PEP 11 project.