Definition of Beehive target improved with fast-track seismic survey data

Oil and gas company Melbana Energy has received the fast-track processed data from the Beehive 3D seismic survey offshore Australia undertaken during August 2018.

To remind, Polarcus completed the acquisition of some 600 square kilometers of seismic data over the Beehive prospect located in the WA-488-P permit, in the Joseph Bonaparte Gulf, 225 kilometers southwest of Darwin back in August 2018. Polarcus used the Polarcus Naila vessel for this survey.

The survey was carried out to further de-risk the prospect and help with defining of a preferred location for the Beehive-1 exploration well.

Melbana said on Monday that the final dataset is due for delivery by early March.

According to the company, the quality of the 3D data is excellent with vastly improved imaging when compared to the 2D seismic data, leading to clearly improved definition of the Beehive structure and reservoir unit.

Total and Santos have an option, exercisable together or individually, to acquire a direct 80% participating interest in the permit in return for continuing to fully fund 100% of the costs of all activities until completion of the Beehive-1 well. The option is exercisable at any time, but no later than 6 months from the final processed seismic survey data being accepted by Santos, Total and Melbana.

Drilling in 3Q 2020

If the option is exercised, drilling is anticipated in 3Q 2020, with Melbana estimating the cost of the Beehive-1 exploration well to be within the $40-$60 million range.

Melbana Energy’s CEO, Robert Zammit, said: “The data quality of the Beehive 3D seismic survey is much improved over the 1999 2D data and should help Total and Santos in their decision to exercise their option to drill the Beehive-1 well. Once the final quality control checks are completed, Total and Santos have six months to exercise their option. If Total and/or Santos exercises their option to drill, Melbana retains a 20% interest in WA-488-P and is fully carried until the completion of drilling of the first well in the permit.

“In December last year Melbana reached agreement with Total and Santos for them to accelerate drilling planning, fully funding initial activities including drafting of an environment plan, well concept identification and commencement of rig selection to ensure readiness for drilling in 3Q 2020 in the event the option is exercised.”