Australia: Norwest to begin Xanadu seismic survey in May

Australian oil and gas exploration company Norwest Energy has received the required regulatory approvals to proceed with its planned Xanadu 3D seismic survey offshore Australia.

Norwest said on Thursday that the ordering of long-lead items for the planned Xanadu 3D seismic survey would now begin.

The company expects mobilization to the site to begin in mid-April, with the survey acquisition starting in the first week of May pending arrival of the necessary equipment and suitable weather conditions.

Norwest added that results of processing and interpretation of the data should become available during the fourth quarter of 2019.

Managing director and CEO of the company, Shelley Robertson, said: “Notwithstanding the delays, the timing of this approval has worked in our favor, as the mid-year period usually provides optimal weather conditions relating to wave height and wind strength, which should improve the quality of our data and minimize the acquisition timeframe.”

The Xanadu prospect is located in state waters in exploration permit TP/15, some 300 kilometers north of Perth, Western Australia. The prospect targets Permo-Triassic sands from a depth of approximately 800 meters located in shallow water immediately adjacent to the coast.

The Xanadu-1 well intersected hydrocarbon bearing intervals on September 17, 2017, as demonstrated by elevated gas readings, oil shows, fluorescence, and cut-fluorescence while drilling.

Subsequent oil and fluid testing from Xanadu-1 confirmed similarity with the oil produced at Cliff Head, meaning that Cliff Head could be used as an analogue in developing future exploration, appraisal, production and development scenarios at the prospect.

The Cliff Head oil field and onshore production processing facility is located approximately 14 kilometers to the north of Xanadu.

The license which holds the Xanadu prospect is operated by Norwest which holds a 25% stake. Partners in the permit are Triangle Energy with a 45% stake and 3C Group which holds the remaining 30%.

Xanadu seismic program

Norwest awarded the seismic program to service provider Synterra Technologies, and the associated budget for the program has already been approved.

“The TP/15 permit has limited 2D seismic coverage, and by acquiring 3D seismic, the Xanadu structure can be mapped in much greater detail. The 40 square-kilometer area is designed to fully map the northern up-dip region, and the southern down-dip region extending out to the western flank of the Xanadu structure,” the company said.

Once the survey data has been processed, interpreted and integrated with the existing dataset, the partners on the license will consider an appraisal well on the Xanadu structure.

According to Norwest, the seismic data will enable the well surface location and trajectory to be optimally designed to provide the best chance for a significant commercial appraisal.

It is worth noting that a five-year permit renewal was granted during 2018, with the Xanadu 3D seismic survey fulfilling the year one commitment of the approved five-year work program.