KUALA LUMPUR (Dec 29): Hibiscus Petroleum Bhd’s (KL:HIBISCS) associate has paused drilling at the Charlemont-1 exploration well off Australia after encountering gas at a shallower-than-planned depth.
3D Energi Ltd, a 7.43%-owned associate of Hibiscus, disclosed to the Australian Securities Exchange that gas was intersected in the Waarre C formation around 160 metres above the primary target reservoir, Waarre A.
Drilling was paused on Dec 25 after higher-than-anticipated pressures were encountered at a depth of about 2,552 metres measured depth.
3D Energi holds a 20% participating interest in the Charlemont-1 well. ConocoPhillips Australia is the operator with a 51% stake, while Korea National Oil Company — South Korea's state-owned oil and gas company — holds the remaining 29% interest in the project.
The Charlemont-1 well, located within the VIC/P79 exploration permit in the offshore Otway Basin, was spudded on Dec 10 using the Transocean Equinox drilling rig.
The operator, ConocoPhillips Australia, is currently assessing potential adjustments to the well design, including options to continue drilling to the primary Waarre A target.
3D Energi said the presence of gas at this shallower level was not anticipated based on pre-drill evaluations of the Charlemont-1 prospect.
"Activities are currently underway to assess potential adjustments to the well design to enable drilling to the primary target, the Waarre A," 3D Energi said.
The permits in the Otway Basin are part of a broader portfolio of five exploration blocks held by 3D Energi.
The three others are: VIC/P74 in the Gippsland Basin, adjacent to the Kingfish oilfield, Australia’s largest; WA-527-P in the Bedout Sub-basin, close to the Dorado oil discovery; and GSEL 759, located 20km southeast of Mount Gambier, near the South East Pipeline System. 3D Energi holds 100% participating interest in the three exploration blocks.
Hibiscus, through its indirect wholly owned subsidiary Carnarvon Hibiscus Pty Ltd, also has interests in one other licence located in the prolific oil and gas producing province of the Bass Strait of Australia.