|
BHP BILLITON ANNOUNCES APPRAISAL WELL DRILLING RESULTS IN GULF OF MEXICO
BHP BILLITON PLC
APPRAISAL WELL DRILLING RESULTS IN GULF OF MEXICO
BHP Billiton announced today the results from its Neptune-3 appraisal well in
the Gulf of Mexico.
The well was drilled to a measured depth of 18,643 feet and has been temporarily
abandoned. The well encountered 450 gross feet of hydrocarbon column, with
approximately 130 feet of net oil pay in a similar Miocene age reservoir as seen
in Neptune-1 & 2. An additional 20 feet of net oil pay was also encountered in
a younger Miocene age reservoir.
After integration of final fluid sample analysis, petrophysical interpretation
and new seismic data, the partnership will select a subsequent location for
appraisal drilling and expect to commence further operations within six months.
Pending further appraisal results, development options under consideration are a
tieback to a future production hub in the area or a stand-alone production
facility.
BHP Billiton Petroleum`s President Deepwater Discovery and Appraisal, Steve
Bell, said today: "This is a positive outcome. We knew we had oil in the
reservoir but previous results suggested that the flow characteristics of the
fluids from Neptune-2 were poor and inadequate to sustain a commercial
development. However with this well result we have not only confirmed the oil
column but also demonstrated that the hydrocarbons have significantly better
flow properties, offering the potential for development - but we will need to
evaluate all the data and carry out further appraisal activity in order to fully
assess the commercial potential of the accumulation."
Neptune-3 was spud on June 8 2002, using the BHP Billiton-operated drillship CR
Luigs in Atwater Valley Block 617 in a water depth of 6,140 feet. BHP Billiton
is the designated operator of the five-block unit with a 50-percent working
interest. The other participants are Marathon Oil Company and Woodside Petroleum
Ltd., which hold 30-percent and 20-percent working interests, respectively.
In 1995, BHP Billiton farmed into the Neptune prospect, which was previously
operated by BP, and drilled the discovery well, Neptune-1. A subsequent
appraisal well, Neptune-2, was drilled in 1998 and abandoned after recovering
hydrocarbon samples.
The Neptune discovery is located in the Atwater Foldbelt region of the Gulf of
Mexico. This area includes the Mad Dog and Atlantis fields, where earlier this
year BHP Billiton approved funding of up to US$690 million for development
projects on those two fields.
****
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Mark Lidiard, Investor &
Relations Media Relations
Tel: + 61 3 9609 3952 Tel: +44 20 7747 3956
Mobile: +61 408 313 259 email:
email: Mark.Lidiard@bhpbilliton.com
Andrew.W.Nairn@bhpbilliton.co
m
Mandy Frostick, Media South Africa
Relations Michael Campbell, Investor &
Tel: +61 3 9609 4157 Media Relations
Mobile: +61 419 546 245 Tel: +27 11 376 3360
email: Mobile: +27 82 458 2587
Mandy.J.Frostick@bhpbilliton. email:
com Michael.J.Campbell@bhpbillit
on.com
United States
Francis McAllister, Investor
Relations
Tel: +1 713 961 8625
Mobile: +1 713 480 3699
email:
Francis.R.McAllister@bhpbilli
ton.com
Date: 18/07/2002 09:44:44 AM Produced by the JSE SENS Department
|
|
