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Santos exceeds prospect at Bedout Basin, WA

ASX 200
ASX:STO      MCAP $24.29B
23 September 2019 01:12 (AEST)

Santos has announced Dorado-3 has exceeded expectations at the Bedout Basin, offshore in Western Australia.

The Baxtor formation flow test of the Dorado field has confirmed excellent productivity and fluid quality from the Baxter gas and condensate reservoir.

The flow test was the first of two planned for the Dorado field, with the testing of the primary Caley oil reservoir to be undertaken in the coming weeks.

Results from the 12 hour test achieved a maximum rate of approximately 48 million standard cubic feet per day of gas and 4,500 barrels per day of associated condensate through a 60/64” choke.

Production was limited by surface equipment constraints indicating the reservoir has the capacity to flow at significantly higher rates.

“Completion of the multi-rate testing exceeded initial expectations and has provided further reservoir information consistent with other high rate North West Shelf gas wells,” the company said.

Preliminary interpretation of the well tests shows better reservoir quality and condensate gas ratio better than expected, which will result in higher well deliverability when the field is developed.

“The flow rate in the Baxter confirms our interpretation of a high quality reservoir with excellent productivity and condensate-rich gas with low levels of impurities,” CEO Kevin Gallaghe said.

“This result further increases our confidence in our ability to commercialise the significant condensate resources in the Dorado field.”

Santos has an 80 per cent interest in the Dorado-3 well, with Carnarvon Petroleum. It is located approximately 160 kilometres north of Port Headland and one kilometre north-west of the Dorado-1.

A separate test will be undertaken over the Caley oil reservoir to provide key information on deliverability and fluid compositions.

“We look forward to the results from the planned test of the Caley oil reservoir, which should close out the Dorado appraisal program, Kevin added.”

Santos gained 0.64 per cent on the ASX today and is selling its shares for $7.84 apiece.

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