Western Gas secures funding for Sasanof-1 Exploration Well

Western Gas, Operator of exploration permit WA-519-P, has reached agreement with Global Oil and Gas Limited to fund 50% of the drilling costs for the Sasanof-1 exploration well, offshore Western Australia.

The Sasanof-1 exploration well is in WA-519-P in Commonwealth waters, about 207km northwest of Onslow, Western Australia, and is scheduled to drill in the first quarter of 2022, subject to approvals.

Western Gas has secured the Valaris MS-1 rig to drill the well and has contracted specialist well engineering and drilling management company AGR Australia to manage the Sasanof drilling campaign, with an estimated total campaign duration of 25 days. Drilling costs are estimated at US$20 million.

Western Gas said that independent assessment of the Sasanof Prospect by ERC Equipoise estimates a 2U Prospective Resource of 7.2 Tcf gas and 176 MMbbls condensate (P501), with a 32% chance of success. The high case 3U Prospective Resource estimate is for 17.8 Tcf gas and 449 MMbbls condensate (P10).

The agreement will see Global Oil and Gas fund 50% of the cost of drilling the Sasanof-1 exploration well through a 25% acquisition of Western Gas (519 P) Pty, the licence holder for WA-519-P.

The Sasanof Prospect is on trend and updip of the Mentorc Gas and Condensate Field and nearby the giant gas fields of Scarborough and Io-Jansz in the Carnarvon Basin. The liquids rich, low C0₂ Mentorc Field is the eastern fault block and is “filled to spill” into the updip Sasanof Prospect to the west.

Western Gas said drilling would commence at the earliest in mid-February 2022, subject to approvals, with an estimated total campaign duration of 25 days.

Sasanof-1 will be a vertical well and drilled to a total depth of approximately 2500m in 1070m of water,

providing a low cost, high impact exploration activity in a known and proven hydrocarbon province.

“We are delighted to have GLV on board to support this important drilling campaign that, on success, has the potential to be a game changer for the North West Shelf at a time of declining production and expected gas shortages,” said Will Barker, Executive Director of Western Gas.

“A discovery of the estimated size of Sasanof will provide multiple gas supply opportunities, including domestic gas, LNG backfill and expansion, and new value-adding industries.”