|
BHP Billiton Plc
Share Code: BIL
ISIN: GB0000566504
BHP BILLITON ANNOUNCES EXTENSION TO OIL AND GAS FIND IN DEEP WATER GOM;
COMPLETES FUNDING ALLOCATION FOR ATLANTIS
BHP Billiton announced today the results of appraisal well GC 743-5 (also
referred to as Atlantis-6) and approved full funding for the development of the
Atlantis field.
Atlantis appraisal well encounters thick pay zones
The Atlantis-6 well confirms the presence of hydrocarbons in the previously
unexplored northern part of the structure. Additional drilling will be
necessary to further appraise this portion of the field and assess the impact
on overall reserves. Before drilling of Atlantis-6, the company`s estimated
gross proven and probable reserves at Atlantis were 635 million barrels of oil
equivalent.
Atlantis-6 is located on Green Canyon Block 743. The well encountered
hydrocarbons in several zones, including 605 feet (184 meters) of gross oil
pay/460 feet (140 meters) of net oil pay and 360 feet (109 meters) of gross gas
pay/200 feet (61 meters) of net gas pay.
BHP Billiton has a 44 per cent working interest both in the Atlantis-6 well and
the Atlantis field. BP is the operator with a 56 per cent interest in the well
and development project. The BP-operated rig Deepwater Horizon drilled
Atlantis-6 in water depths of 5,405 feet (1,643 meters) to a total depth of
20,131 feet (6,137 meters).
President and CEO of BHP Billiton Petroleum Philip Aiken remarked: "The very
positive drilling results from our first well in the northern part of the field
will lead us to upwardly revise our overall proven and probable reserves gross
estimates of 635 million barrels of oil equivalent. This is another major
success in our deepwater Gulf of Mexico petroleum strategy."
BHP Billiton commits US$1.1 billion for Atlantis development
BHP Billiton today also approved a total of US$1.1 billion (BHP Billiton share)
for the development of the Atlantis oil and gas reserves in the Gulf of Mexico.
This includes US$355 million the company approved in May 2002 to advance the
project by funding detailed engineering and design work, purchasing of long-
lead items, and awarding major contracts.
This completes the investment commitment by BHP Billiton that will be necessary
to bring Atlantis into production and recover the present estimate of 635
million barrels of oil equivalent (mmboe) gross (BHP Billiton share: 244 mmboe,
net after royalty payment).
The funds will cover the completion of project engineering, pre-drill and
completion of the initial producing wells, and construction and installation of
production facilities and subsea equipment.
Mr Aiken further commented: "Development of the Atlantis field adds significant
value to the company. With the approval of the Mad Dog project last year and
the equity we purchased in associated pipeline infrastructure for these two
large developments, the company`s Gulf of Mexico assets are poised to make a
substantial and long-term contribution to company earnings."
Based upon recently completed engineering, planning, and contracting studies,
first oil is targeted for the third quarter of calendar 2006. Production is
expected to reach plateau levels at nameplate design capacity within the first
six months of operation. The field has an estimated production life of
approximately 15 years.
Background on the Atlantis field
The Atlantis development is located in the Atwater Foldbelt, approximately 125
miles south of New Orleans in the vicinity of Green Canyon Block 743,
comprising seven blocks in the area at water depths ranging from 4,400 to 7,100
feet. The field will be developed using a moored semi-submersible production
facility with gross design capacity of around 150,000 barrels of oil per day
and 180 million cubic feet per day of natural gas. The system design contains
provisions for future capacity expansions. The exploitation of any additional
upside volumes would be the subject of future detailed engineering and cost
estimates.
Atlantis is believed to be the third largest oil and gas field yet discovered
in the Gulf of Mexico and is one of the 50 largest hydrocarbon fields ever
discovered among the more than 31,000 fields found to date in the United
States. The Atlantis field was discovered in June 1998 in 4,400 feet of water
with the Atlantis-1 well drilled in Green Canyon Block 699. Further appraisal
wells were drilled in 3Q 2000 (Atlantis 2 and sidetrack) and 3Q 2001 (Atlantis
3 and sidetrack). The accumulation encompasses seven blocks in the southeast
portion of the Green Canyon Protraction area.
BHP Billiton is among the largest acreage holders in the deepwater Gulf of
Mexico with approximately 270 leases concentrated primarily in the central Gulf
region.
***
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia
Andrew Nairn, Investor Relations
Tel: +61 3 9609 3952 Mobile: +61 408 313 259
email: Andrew.W.Nairn@bhpbilliton.com
United Kingdom
Mark Lidiard, Investor & Media Relations
Tel: +44 20 7802 4156 Mobile: +44 7769 934 942
email: Mark.Lidiard@bhpbilliton.com
Tracey Whitehead, Media Relations
Tel: +61 3 9609 4202 Mobile: +61 419 404 978
email: Tracey.Whitehead@bhpbilliton.com
Ariane Gentil, Media Relations
Tel: +44 20 7802 4177
email: Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com South Africa
Michael Campbell, Investor & Media Relations
Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
Date: 10/02/2003 08:45:00 AM Produced by the JSE SENS Department |
|
