Chevron Strikes More Gas Off Western Australia Coast

Chevron Corporation (NYSE:CVX), together with Royal Dutch Shell and ExxonMobil, partners for the $US54 billion Gorgon LNG venture, has announced striking a major gas discovery in the Carnarvon Basin off the Western Australia coast. The Isosceles-1 exploration discovery well had encountered 134 metres (440 feet) of net gas pay in the Triassic Mungaroo Sands in 968 metres of water (3,175 feet), Chevron said. This area is located in the WA-392-P permit area. It is approximately 95 kilometres (60 miles) northwest of Barrow Island, off the coast of Western Australia.

Chevron Australia is the operator of WA-392-P with a 50 percent interest. The remainder is held by Shell Australia and Mobil Australia Resources, holding 25 percent interest each. The three companies have been drilling exploration wells that have yielded successful gas discoveries, which will help lengthen the life of resources being used in the project.

According to Melody Meyer, president of Chevron's exploration and production division in Asia-Pacific, the gas discovery "further positions our company as a key supplier for future LNG demand in the Asia-Pacific region." The Gorgon project, now over 90 percent complete, is described by ABC News as “the largest single resource development in Australia's history,” at 40 trillion cubic feet.

The project currently being built on Barrow Island consists of three LNG production lines. A fourth is on the table once the expansion plans push forward later. The Greater Gorgon area has proven hydrocarbon reserves of 13.8 Tcf.

“This discovery in the Greater Gorgon Area is an important addition to our portfolio and highlights the industry-leading results of our exploration program in Australia,” Roy Krzywosinski, managing director, Chevron Australia, said.

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