Page 5 - AsianOil Week 12 2022

AsianOil COMMENTARY AsianOil

Source: Santos

a potential low-cost tie-back to the first phase have a P50 best estimate prospective resource of
of the proposed Dorado development, with 40mn barrels on a gross basis, or 28mn barrels
Pavo North having an estimated breakeven net to Santos. The probability of geological suc-
cost of less than $10 per barrel, and future gas cess for the prospective resource in the south-
production from the Bedout Basin providing a ern culmination is assessed at 60%, the company
source of supply into our existing domestic gas said.
infrastructure in Western Australia,” Gallagher
stated. “With the global oil and gas markets see- Bounty hunter
ing increased volatility, low-CO2 [carbon diox- Meanwhile, Bounty put out a statement on
ide] oil and gas resources at Dorado and Pavo March 23 saying that Santos’ result at Pavo-1
add significantly to Australia’s national energy represented an upgrade for the prospectivity of
security.” its drilling targets at the nearby Cerberus field.
Dorado is anticipated to have an initial gross The company described Pavo-1 as “directly
oil production rate of 75,000-100,000 bar- analogous” to Triassic-age drilling targets from
rels per day (bpd). Santos delayed the FID on the Stork cluster within its Cerberus permits. It
Dorado in late 2020, citing the impact of the pointed to seismic data from Cerberus prospects
coronavirus (COVID-19) pandemic. It is now indicating fluid escape features (FEFs) that were The Pavo
due to be sanctioned this year and plans appear similar to Pavo and Dorado.
to be advancing, with Santos awarding a front- Bounty also noted that Santos was due to drill discovery could
end engineering and design (FEED) contract for the Yoorn-1 prospect on the border with Cer- add further
the project to Altera Infrastructure in August berus in the fourth quarter of this year.
2021. Carnarvon, meanwhile, said recently that “The lower-risk more modest prospects we material value
it was working to secure the necessary funding have mapped on the western part of Cerberus
to develop its share of the project. are on trend from Yoorn, which adds another to the Dorado
Gallagher noted this week that the next well string to our bow in relation to the prizes we
in Santos’ exploration campaign in the region, are chasing in this highly prospective part of project.
Apus-1, could offer another nearby tie-back the Carnarvon Basin,” Bounty’s chief operating
opportunity for Dorado, describing this as “very officer, Kane Marshall, stated.
encouraging”. Bounty said its prospective resources and
“The Pavo-1 well result also proves the probability of success in the region were now
petroleum system in the basin is effective over being reviewed in light of the results of Pavo-
a greater area, de-risking a number of nearby 1, as well as near-term drilling at Yoorn-1.
low-cost opportunities,” Gallagher said. Indeed, The company anticipates releasing a market
Santos noted that the Pavo-1 well “significantly” update shortly. Meanwhile, Santos will press
derisks the hydrocarbon-bearing potential of ahead with its ongoing exploration campaign,
the separate southern culmination of the greater now more confident of additional potential in
Pavo structure. the region that can serve to add value to its
The southern culmination is estimated to Dorado development.™

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