Cliff Head oil field can be used for Xanadu development scenarios

November 15, 2017

Australian oil and gas exploration company Norwest Energy might develop its Xanadu well offshore W. Australia, using knowledge from the Cliff Head oil field.

The Australian company has completed oil and fluid testing from the Xanadu-1 exploration well, located in the TP/15 permit, confirming similarity with the oil produced at the Cliff Head oil field.

The TP/15 JV consists of four companies. Norwest is the operator with a 25 percent interest while its partners Triangle, Whitebark Energy, and 3C Group, hold 30, 15, and 30 percent interest, respectively.

Both the Xanadu-1 discovery and the Cliff Head field are sitting in the northern Perth basin. The Cliff Head oil field is located approximately 14km northwest of Xanadu and, according to Norwest, it can now be definitively used as an analog in developing future exploration, appraisal, production, and development scenarios at Xanadu.

The Xanadu-1 well intersected hydrocarbon bearing intervals in mid-September. Norwest Energy said on Tuesday that oil and fluid testing from Xanadu-1 samples was complete.

Seismic in 2018

Norwest has now with its joint venture partners agreed to begin planning a 3D seismic acquisition program following the successful drilling program at the Xanadu well.

“The TP/15 permit has limited 2D seismic coverage, and by acquiring 3D seismic, the Xanadu structure can be mapped in much greater detail. While the primary purpose of the seismic will be to map the northern updip region, it will also be used to map the southern down-dip structure, where significant volumes of oil are believed to be located,” Norwest said.

In a separate statement on Tuesday, Norwest’s partner in the field, Triangle Energy, said that the primary purpose of the seismic was to map where the Xanadu-2 well would be drilled.

According to the operator, the JV is also considering extending the acquisition envelope to encompass the western flank of the Xanadu structure, where further accumulations of oil are possible.

Norwest Energy also confirmed a reservoir engineering study for the first quarter of 2018, and the results would be integrated with the Xanadu-1 well data and 3D seismic data.

Strategen Environmental was engaged to begin the regulatory approvals process on behalf of the TP/15 JV, and a community consultation plan is under development.

Norwest is currently reviewing proposals from seismic acquisition vendors and, although the timing of the seismic survey is dependent upon regulatory approvals, the company expects to start the seismic survey in late 1Q 2018.

Triangle’s managing director, Rob Towner, said: “With the oil at Xanadu having similar properties to that at Cliff Head means the oil could be processed seamlessly at Triangle’s onshore Arrowsmith stabilization plant, expediting any production to market.”