Quarterly Reports 11 January 2000
The Announcements Officer QUARTERLY REPORT FOR THE PERIOD
AUSTRALIA WA-254-P - OFFSHORE CARNARVON BASIN, During the quarter the Operator presented an update on permit prospectivity. The Collier Prospect (preliminary estimated mean recoverable reserve potential of 15 million barrels) has been added to Sage-2 and Argos as a likely drilling candidate. The Collier prospect is located in the southern most block (part 4) and has multi level potential for an oil discovery. The crestal position of the lower Cretaceous trap is mapped within WA-254-P with the crest of the deeper Upper Callovian (Athol Formation) overlapping the adjoining WA-1-P. Stag type oil shows within the Athol Formation in the recently drilled Oryx-1 and Tusk-1 wells have elevated the prominence of the Collier Prospect. Following the recommendation of Apache, FAR has agreed to purchase the 3D data set over WA-254-P Part 4. Development drilling by Woodside is set to commence shortly on the 40 million barrel Legendre Oil field due to come on stream around mid year. This series of wells and possible future step outs are likely to add significance to Argos, where a wait and see approach is being adopted prior to possible drilling. A renewal application remains outstanding for WA-254-P. EP 395 - OFFSHORE CARNARVON BASIN - 11.25% INTEREST The Operator, Apache Energy, presented a review of exploration potential to the joint venture during the quarter. Boyd East has been confirmed as a candidate for further exploration. A new buttress style play, named K1(a Narvik look-alike), has been mapped and is supported by robust closure and associated bright seismic amplitudes. A Jurassic pinchout/channel play has also been mapped as having exploration potential within EP 395. The forward program will concentrate on the above play types with a view to identifying the strongest candidate for drilling. During the quarter, the joint venture agreed to purchase 64.2 square kilometres of additional 3D seismic within EP 395 and 6.5 square km outside the permit. EP 397 - OFFSHORE CARNARVON BASIN - 33.3% INTEREST During the quarter, the Operator, Tap Oil, presented a review of prospects and leads generated from the newly acquired offshore Panaeus 99 MC3D survey including Bunny and Rupert. The Bunny Prospect has been renamed "Banjo" and was confirmed by the 3D data. Banjo has been proposed as a 2,500 metre test to be drilled during the second half of 2001. Banjo exhibits a robust closure with moderate risk and has significant upside to the east. The 3D mapping also identified several new Triassic (Banjo East Leads 1 and 2, Javelin and Tornier) and Jurassic (Biggada) Leads. The Biggada Formation Leads (especially Lucille) are particularly interesting given the Linda discovery to the North. Several wells have been drilled on the eastern margin Triassic trend to the north of EP 397, successfully encountering oil and gas. These successes have significantly upgraded the Jurassic/Triassic prospectivity of EP 397. FAR is likely to farm out the proposed well and has received strong interest from potential farm-in partners. EP 104 - CANNING BASIN - 8% INTEREST (10% POINT TORMENT) No activity reported. PAPUA NEW GUINEA PPL 213 - PAPUAN BASIN - 8.67% INTEREST A new application covering 33 graticular sections and 2,673 square kilometres has been lodged with the PNG authority. Of these, eight sections are part of PPL 213 and 16 sections are part of PPL 202 which will be conditionally surrendered as part of the new application. Hydrocarbon shows in the Tarim and Menga wells have encouraged the applicants to pursue anticlinal structures further east in the foldbelt where reservoir quality may be better (Amdi, Gu River and Maipe). Remapping of the Champion structure also indicated some potential for commercial oil and this has also been included in the application area. Proposed early work includes the acquisition of up to 65 kilometres of seismic. UNITED STATES OF AMERICA FAR principally targets natural gas in its programs. Spot natural gas pricing in the USA is at seasonal highs (approaching US$10.00 per thousand cubic feet). Clear Branch Field, Jackson Parish, North Louisiana Gas Production has commenced on the Terry Ewing No 1 well. The well was placed on line on Wednesday 20 December at an initial rate of 800 thousand cubic feet per day on a 10/64 inch choke at a flowing tubing pressure of 2,000 psi. The Operator has proposed a foam frac treatment for the well bore scheduled for mid to late January. The Terry Ewing No. 1, was drilled during the third quarter and has logged an aggregate 115 feet of net gas pay. The Operator remains confident in the potential of the discovery despite difficulties bringing the well on line due to well bore damage. 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. Future development plans are to be reviewed during the first quarter of 2001. FAR has a 9.375% working interest in the Clear Branch project. Other interests are held by North American companies including the operator, Rio Bravo Exploration & Production Company. Lake Long Prospect, LaFourche Parish, South Louisiana The 7,350 Sand series has been perforated in the SL 328 No. 6 well. The zone was turned to sales on 5 October 2000 at a stabilised rate of one million cubic feet of gas and 20 barrels of condensate per day on a 7/64-inch choke at a flowing tubing pressure of 2800 psi. The 7,350 Sand has now been reclassified from the probable to proven category. 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. State Lease 328 No 7 Well (NW Segment Prospect)FAR expects a barge rig to arrive on location mid January in preparation for the drilling of the SL 328 No 7 well, a test of the NW Segment Prospect. 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 6,671 barrels for an average of 73 barrels of oil per day at an average price of US$32.78 per barrel before production taxes. Gas sales during the quarter totalled 71 million cubic feet for an average of 0.77 million cubic feet per day at an average price of US$4.84 per thousand cubic feet before production taxes. (January 2001 gas sales are fetching US$9.95 per thousand cubic feet). 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. |
