IN WESTERN AUSTRALIA - Department of Mines and Petroleum

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bearing. No significant hydrocarbons were
encountered. Weasel 1 was plugged and abandoned
as a dry hole on 19 March 2003. The drilling of
Weasel 1 fulfilled the Year 5 work commitment for
permit WA-279-P.
Seven other wells drilled in WA-1-P, WA-248-P, WA-
279-P, WA-296-P, WA-299-P, NT/P57 and EPP29
failed to encounter hydrocarbons.
During the period, the company farmed out 35% of
its equity in WA-248-P to MIMI, leaving a residual
interest of 45%.
DEVELOPMENT AND PRODUCTION OVERVIEW
(Compiled from data provided by companies; where
there is no report for a company, it is due to them
not submitting a report)
Apache Energy
Simpson (TL/1 & TL/6)
At Simpson, four development wells, Simpson 7,
West Simpson 1, South Simpson 2 and Simpson 6
were drilled and completed during 2003.
Hoover
Hoover 2 (TL/6) was successfully drilled and
completed from the Victoria Platform. The Hoover
field is located over 3 km from the Victoria Platform.
Gipsy
PWA April Edition - 2003 Review
Gipsy 3 was located 1.2 km south of Gipsy 1 and
successfully proved a southern extension of the
Gipsy field confirming 13 m of net oil pay and an
extension of the Gipsy oilfield to the south within the
North Rankin Formation. The well also discovered a
new pool of oil within the deeper Mungaroo ‘B’
sandstones not penetrated by previous drilling
within the Gipsy oilfield. Gipsy 4 was drilled and
completed to produce the oil encountered in both
intervals.
Linda
Linda Development fabrication took place during
2003 with installation and development drilling
expected in February/March 2004.
During 2004, Apache will finish the development of
the Linda field and the upgrade of the gas
processing facilities on Varanus Island (VGEP). VGEP
will expand the capacity of the Harriet Joint Venture
gas plant and compression to around 220 TJ/d
(currently 100 TJ/d). Development activities will
commence for John Brookes gasfield (WA-214-P)
and Bambra gas- and oilfield (TL/1) with first
production expected in mid 2005 and late 2004
respectively. Further appraisal drilling will take place
at the Taunton field in TL/2 and TP/7.
Arc Energy
Checking the welhead at Eremia 1
(image courtesy of Arc Energy)
During the year ARC enjoyed exploration success at
Eremia, appraisal and development success at
Hovea, Jingemia and Cliff Head and commissioned
its permanent oil production facility at Hovea only
nine months after field appraisal was completed.
The company is now firmly established as the
dominant acreage holder and operator in the
onshore Perth Basin, a position under-pinned by its
net production of approximately 413 kL (2600 bbl)
of oil per day and 8 TJ/day of gas. The Perth Basin
now supplies up to 10% of WA’s crude oil
requirements.
In 2004, ARC is undertaking an aggressive oil and
gas exploration programme in addition to
consolidating and improving its production from the
Hovea, Eremia and Jingemia fields. It will also be
aggressively increasing its gas business in the area,
which has very high strategic value for gas supply
to Perth.
2003 Development Highlights
• Successful appraisal/development drilling at
Hovea 5, 6, 7, 8, 9 and 10 enabled field
production to increase to in excess of 794 kL/d
(5000 bbl/d)
• First use of auto-trak rotary steerable drilling
system onshore WA
• First commercially successful horizontal oil
development well (Hovea 8) in onshore WA
• Appraisal/development drilling at Jingemia 2 and
3 confirming a commercial field and extended
production testing commenced
• Appraisal drilling at Cliff Head 3 and 4
progressing the field towards a declaration of
commerciality
2003 Production Highlights
• Test production commenced from Eremia 1, six
weeks after the well was completed
• Production from Hovea and Eremia increased to
in excess of 874 KL/d (5500 bbl/d)
• One millionth barrel of oil produced from Hovea
• Continued gas production from the Dongara
gasfield
• Highly successful road transport system for
crude export commissioned
2003 Corporate Highlights
ARC consolidated its position as the principal
acreage holder and operator in the northern Perth
Basin
• ARC awarded EP2/02-3 to the north of L1/L2 as
operator subject to native title determination
• ARC sold its 7.5% interest in offshore permit
WA-286-P to ROC Oil
• ARC purchased AWE’s interests in EP413,
EP368, EP320 and L11
• On 10 February 2004, purchased a 100%
interest in L7 (Mt Horner)
• Posted a 2002/03 financial year after tax profit
of $8.97 million and a 31 December 2003 halfyear
profit of $8.5 million
BHP Billiton Petroleum
BHP Billiton Petroleum holds a 45% interest and is
the operator of the Griffin field, WA-10-L. Joint
venture partners in WA-10-L are Mobil Exploration
& Producing Australia (35%) and Inpex Alpha (20%).
The Griffin oil and gas project is located
approximately 60 km offshore Western Australia. Oil
and gas from the Griffin, Chinook and Scindian
fields are produced via the Griffin Venture, a floating
production, storage and offloading facility (FPSO).
The Griffin Venture is a disconnectable vessel
(which allows it to relocate in the event of a cyclone)
with gas processing facilities on board.
Griffin gas is exported directly into the Dampier to