1

ESSO COMMENCES EXPLORATION DRILLING IN THE GIPPSLAND BASIN

Esso Deepwater Gippsland has commenced an offshore exploration drilling program in the Gippsland Basin to search for new sources of gas.
Esso Deepwater Gippsland is drilling two exploration wells, known as Baldfish and Hairtail, on the VIC/P70 block as part of its investment program to find and bring online new gas supplies. Esso Deepwater Gippsland holds a 100 percent interest in the VIC/P70 block, which is approximately 90km off the East Gippsland Victorian coast.
Diamond Offshore’s Ocean Monarch semi-submersible drilling rig is drilling the wells, which is expected to take several months.
Chairman Richard Owen said this ambitious exploration drilling program adds a new, exciting chapter to the exploration of the Gippsland Basin.
“The two wells will be drilled in water depths ranging from 350 to 700 meters, amongst the deepest water depths drilled in the Gippsland Basin,” Mr Owen said.
The AUD$120 million investment in drilling by Esso Deepwater Gippsland is in addition to other recent investments by ExxonMobil Australia in Victoria, including the AUD$4.5 billion Kipper Tuna Turrum offshore project, the AUD$1 billion Longford Gas Conditioning Plant and the future development of the West Barracouta gas field.
“This $120 million exploration drilling program demonstrates our commitment to bringing new gas supplies to the domestic market,” Mr Owen said.
ExxonMobil Australia has more than 50 years of experience in Bass Strait and in 2019 celebrates its 50th year of gas production as part of the iconic Gippsland Basin Joint Venture.
Since the first well was drilled in 1965 in Bass Strait, approximately four billion barrels of crude oil and eight trillion cubic feet of natural gas have been produced.
According to Geoscience Australia, the Gippsland Basin, one of Australia’s most prolific hydrocarbon provinces, is situated in southeastern Australia and is located about 200km east of the city of Melbourne. Most of the commercial oil and gas discoveries are reservoired within the siliciclastics of the Late Cretaceous to Paleogene Latrobe Group. Remaining reserves are estimated at 400 MMbbl of liquids and 6 Tcf of gas. Block VIC/P70, in the deepwater Gippsland basin, was acquired by Esso Deepwater Gippsland in Q2, 2017. It is the first new exploration acreage acquired by ExxonMobil in Australia since 2010, and the first in the Gippsland Basin since 1996. (Source: ExxonMobil Australia – Image: Ocean Monarch/Perth Now)