Apache Corporation said that the Spar-2 appraisal well in Permit WA-4-R offshore Western Australia tested 58 million cubic feet (MMcf) of natural gas and 950 barrels of condensate per day.
Apache's Australia subsidiary plans to bring gas from the Spar Field and nearby Halyard Field to Western Australia's domestic gas market via an existing Apache-operated pipeline 10 miles southeast of Spar-2 and through the Varanus Island processing and transportation hub.
First production from Halyard of approximately 50 MMcf per day (gross) is expected in the second half of 2011 with Spar following in late-2012 as additional capacity becomes available at Varanus Island.
Apache owns a 55-percent interest in both WA-4-R and adjacent Permit WA-13-L, where Halyard is located. Santos owns the remaining interests.
Spar-2 was completed over a perforated interval of 131 feet (40 meters) within 163 feet (50 m) of high-quality gas pay in a single zone at the top of the Barrow Group formation. The appraisal is located about one mile (1.6 kilometers) to the southwest of the Halyard-1 discovery and approximately 18 miles (29 km) southwest of Apache's John Brookes platform.
"The thickness and quality of the reservoir sandstone and high flow rates are a very positive result for Apache, for Santos and — ultimately — for Western Australia," said Thomas M. Maher, vice president and managing director of Apache's Australia Region. "The proximity to Apache's existing infrastructure will reduce the time and expense required to develop the project and deliver needed gas supplies to the growing Western Australia market."
The Halyard-1 discovery, drilled in 2008, test-flowed at a peak rate of 68 MMcf of gas and 936 barrels of condensate per day from 91 feet (28 m)of net pay in the Cretaceous Halyard sandstone.