Quarterly Reports 11 October 2000
The Announcements Officer QUARTERLY REPORT FOR THE PERIOD
AUSTRALIA WA-254-P - OFFSHORE CARNARVON BASIN, A renewal application remains outstanding for WA-254-P. The future work program incorporating follow up at Sage, Argos and newer prospects, overlapping into adjacent blocks, will depend upon the outcome of the renewal application. EP 395 - OFFSHORE CARNARVON BASIN - 11.25% INTEREST The Operator, Apache Energy, has called a meeting for late
October to review the forward program for EP 395. Oil shows in
the Boyd-1 well are on the agenda for discussion, in addition
to a large number of prospects/ leads that have been identified on
3D seismic. The Operator, Tap Oil, has called a meeting for late October to
review the forward program for EP 397. The meeting will review
prospects and leads generated from the newly acquired offshore
Panaeus 99 MC3D survey including Banjo (formerly named Bunny) and Rupert. These
prospects are at the same geological level as the Gipsy, Rose and
Lee discoveries to the north. No activity reported. PAPUA NEW GUINEA PPL 213 - PAPUAN BASIN - 8.67% INTEREST Following earlier regional interpretative studies designed to generate a ranking of prospects and leads, field mapping and spot sampling were conducted during the April/May period. Following field work, the "Yai 2000 Traverse Spotting Survey Report" was completed during the September quarter. Depending upon results, further field work over more specific areas may be required prior to the seismic acquisition phase (early 2001). A bias toward oil prospectivity is favoured by the Joint Venture. PPL 202 - PAPUAN BASIN - 12.5% INTEREST The Operator is continuing to assess both geological and geophysical data with an emphasis on identifying oil prone leads in close proximity to infrastructure. The "Yai 2000 Traverse Spotting Survey Report" and "PPL 202 Foreland Seismic Interpretation Report" were completed during the quarter. UNITED STATES OF AMERICA FAR principally targets natural gas in its programs. Spot natural gas pricing in the USA is at seasonal highs (exceeding US$5.00 per thousand cubic feet). Clear Branch Field, Jackson Parish, North Louisiana The second well in the year 2000 program, the Terry Ewing No. 1, was drilled during the quarter and has logged an aggregate 115 feet of net gas pay. The Cotton Valley section (between 11,940 and 12,002 feet) appears to be forty two (42) feet structurally higher than the O'Quinn offset well with no apparent water level. The O'Quinn well recorded an initial production rate of 5 million cubic feet of gas per day without any stimulation. The Cotton Valley formation is a tight sand likely to require fracture stimulation. The discovery well lies on trend with significant Hosston and
Cotton Valley production which blankets a portion of North
Louisiana. Hunt Oil discovered the field in 1976 and has
produced in excess of 55 billion cubic feet of gas from multiple
Hosston reservoirs. Since quarter end, a 44-foot interval of the Cotton Valley formation in the Terry Ewing No 1 well has been perforated by Schlumberger. The well is presently flowing back load fluid following which the well will be swabbed in to enable gas flow. To prevent formation damage, it is planned to produce the well without stimulation at less than full capacity while the productive properties of the Cotton Valley are evaluated. Following evaluation the well may be fracture stimulated. Construction of a flow line connecting with the Louisiana State Gas Pipeline is now complete enabling gas to be sold during the testing phase. An interim 30 day contract has been signed with SEGO at 12 cents under Henry Hub or approximately US$5.20 per thousand cubic feet. The Operator has presented initial plans for the drilling of 8 wells within the discovery. The participants have contracted a second well, the Willamette No 2, a test of the Blue and Yellow Hosston Sands at a location approximately 2,000 feet to the north of the No 1 well. A rig is scheduled to arrive early November. FAR has a 12.5 percent participation in the Clear Branch project reducing to a 9.375% working interest on completion of the test well. Other interests are held by North American companies including the operator, Rio Bravo Exploration & Production Company. Mikeska-Hamill Field Prospect, Austin County, Texas The third well in the year 2000 program, the Schulz-1 well, was plugged and abandoned during the quarter, after failing to locate commercial hydrocarbons. FAR has a 10 percent interest in the well and 975 acre lease. Other interests are held by the Operator, Goodrich Petroleum Company (NYSE). Lake Long Prospect, LaFourche Parish, South Louisiana State Lease 328 No 6 Well The participants elected to complete the 7,350 Sand series after an unsuccessful attempt to complete in the 14 Series Sands (between 8,780 and 8,795 feet). The 14 Series Sand will be further evaluated. Several other proven zones remain behind pipe in the No 6 wellbore. FAR has a 30 percent working interest in the SL328 No.6 well with
the remaining interest held by the Kriti et al. The SL 328 No 7 well, a test of the NW Segment Prospect, is likely to spud during November. The planned deviated well will evaluate thirteen Miocene zones, eleven of which are productive in a major field fault block immediately south and adjacent to the NW Segment Fault Block. The southern block has produced 25 million barrels of oil equivalent. Plans call for the test well to be drilled from a barge rig to a true vertical depth of 12,000 feet. The prospect is supported by a modern grid of 3D seismic tied to sub surface well control. Numerous bright spots are evident on seismic. A well drilled in 1949 intersected 15 feet of gas bearing sands at the 5,500-foot Sand interval. These sands were not produced at the time due to low gas prices, however, their existence considerably reduces the commercial risk. The field is supported by existing infrastructure connected to Columbia Gas Pipeline System. The level of FAR's participation in the SL 328 No 7 well is 20
percent reducing to a 15 percent working interest upon completion
with the remaining interest held by the Kriti et al. PRODUCTION Oil sales during the quarter totalled 7,958 barrels for an average of 87 barrels of oil per day at an average price of US$29.61 per barrel before production taxes. Gas sales during the quarter totalled 66 million cubic feet for an average of 0.72 million cubic feet per day at an average price of US$4.25 per thousand cubic feet before production taxes. Gas sales during the December quarter are expected to increase with new production at Lake Long and Clear Branch. FAR's activities can be accessed via the Internet at www.farnl.com.au
NOTE: In accordance with Chapter 5 of the Listing Rules,
the geological information in this report has been reviewed by Terry
Barr, a geologist with 20 years experience and a Fellow of
AIMM. Mr Barr has given his consent to the information in the
form and context in which it
appears. |
