Xanadu oil prospect is located in the southern part of the TP/15 permit of the Perth Basin, off the shore of Australia.
The TP/15 permit is operated by Norwest Energy, which holds 100% interest in the field.
Norwest completed a joint venture (JV) agreement with Triangle Energy, 3C Group IC and Whitebark Energy (previously Transerv) to farm-out the permit in February 2017.
The agreement will see the JV fund the drilling of the Xanadu-1 appraisal well, with 3C Group IC and Triangle each contributing 40% of the costs and Whitebark contributing the remaining 20%.
Triangle and 3C Group IC will subsequently earn 30% interest each, while Whitebark will earn 15% interest and the remaining 25% stake will be held by Norwest.
The TP/15 permit of the Perth Basin is located approximately 250km north of Perth and covers an area of 645km².
The permit is characterised by the presence of Permo-Triassic sands with a Kockatea Shale reservoir seal.
Xanadu is considered to be one of the biggest oil prospects in the basin.
The Xanadu prospect lies on the Beagle Ridge and features similar sand packages and target reservoirs to those of the Cliff Head oil field, which is also located in the Perth basin.
The structural mapping of the prospect is based on high-quality seismic and gravity data.
Xanadu is estimated to contain prospective recoverable resources of 160 million barrels of oil (Mmbbls).
A 50% recovery rate is currently being assumed by the developers.
Xanadu provides an advantage to operators because of its relatively low cost of exploration, which is due to the fact it is located close to the shore and so can be drilled from an onshore location.
Existing seismic data and similarities with the Cliff Head field support the feasibility of developing the field. However, further appraisal is essential to evaluate the extent of potential resources as existing 2D seismic data is insufficient.
The well will also enable the developers to refine the structural detail of the prospect.
The Xanadu-1 well is slated to be drilled in September 2017 by Enerdrill’s Rig 3, a Cantilever Triple-type rig with a depth capacity of 4,500m.
It will be drilled from a location on the EP413 onshore permit via a deviated well. The primary target will be the Permian Dongara Sandstone, which is located at depths of roughly 8,000m.
The Irwin River Coal Measures and the High Cliff Sandstone have also been outlined as the well’s secondary targets.
Xanadu is located close to existing infrastructure, which will allow the fast-tracking of the field’s development.
The recovered oil can be sent to Triangle Energy’s Arrowsmith plant in Dongara for processing.
The full development plan and future drilling operations are still to be finalised. They are expected to be decided based on the results of the Xanadu-1 well.
Aztech Well Constructions was responsible for planning the Xanadu-1 well and was also involved in the selection of third-party service providers.
The company is also set to offer project management and technical support during the drilling operations.
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