Chevron Discovers More Gas in Australia

Release Date: 2011-02-09

Chevron makes tenth gas discovery in Australia within the last 18 months along with JV Partners Mobil, Shell, BP Exploration

Still high from the fumes of its last gas discovery, US energy giant Chevron revealed Wednesday that it’s made a further drilling success in Western Australia’s Carnarvon Basin.

Chevron’s subsidiary, WA-24-R, along with joint venture partners Mobil, Shell, BP Exploration believe that the latest discovery will help strengthen their $43 billion Gorgon Project. “Our leading Carnarvon Basin leasehold and our accompanying exploration success help underpin further expansion opportunities on the Gorgon Project,” Chevron Asia Pacific Exploration and Production president Jim Blackwell said.

The discovery particularly stands out from Chevron’s last nine discoveries in Australia within the last 18 months because of the size of the gas column. Chevron said, “Combining both appraisal and exploration objectives, the well encountered 243 feet (74 meters) of net gas pay, of which 102 feet (31 meters) of net gas pay was encountered in a deeper, previously unexplored target interval in the Orthrus field.”

The Orthrus-2 well is located in the WA-24-R permit area approximately 100 kilometers northwest of Barrow Island. The well was drilled to a total depth of 4,297 meters.

Chevron vice chairman George Kirkland said, “The find at Orthrus-2 represents our tenth offshore discovery in Australia within the past 18 months. Our successful drilling program offshore Western Australia demonstrates Chevron’s global exploration capability and our commitment to technical excellence and safe operations.”

Chevron is Australia’s largest holder of undeveloped gas resources, and is currently building its discovered gas portfolio. Following the announcement Wednesday,
Chevron’s shares were trading at US$95.84 on the NYSE.

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