Chevron Australia, a subsidiary of Chevron, has encountered gas pay at the Satyr-2 well located in the Greater Gorgon Area of the Carnarvon Basin, offshore of Australia.
The well, located in the WA-374-P permit area around 120km north-west of Barrow Island, has been drilled to a total depth of 3,796m in 1,088m of water.
George Kirkland, Chevron vice chairman, said: "This new discovery in the Greater Gorgon Area further highlights the quality of Chevron’s exploration capability in the region and the significance of Australia to Chevron’s energy portfolio."
Melody Meyer, Chevron Asia Pacific Exploration and Production Company president, said: "The continued exploration success in the Carnarvon Basin could help underpin expansion opportunities at our LNG projects in Australia and support our drive to become a leading supplier of liquefied natural gas to world markets and domestic gas to Western Australia."
Satyr-2 exploration well is the company’s 15th discovery in Australia since mid-2009. Chevron Australia is the operator of the project with 50% interest, while other co-partners include Shell and Exxon Mobil, each holding a 25% stake respectively.
The discovery of gas at the Satyr-2 exploration well is expected to support an expansion of the Chevron-operated Gorgon liquefied natural gas (LNG) project off the coast of Western Australia.
The Gorgon gas fields are estimated to contain 40 trillion cubic feet of gas deposits, with an expected 40-year economic life.
The project will have the annual capacity to produce 15 million tons of LNG; the first shipment of LNG is expected in 2014.
Image: Chevron Corporation headquarters in San Ramon, California, US. Photo courtesy of: Coolcaesar.