Neon Energy Ltd. has awarded a contract to CGG Services Ltd. for licensing of 200 sq km (77 sq miles) of new broadband 3-D seismic data over the WA-503-P offshore petroleum exploration permit, according to a press release. Block WA-503-P is located offshore Western Australia within the Dampier Sub-basin and is operated by Neon Energy (100%). Water depths within the block range from 50 m to 70 m (164 ft to 230 ft).
The 3-D seismic program will meet Neon Energy’s firm work commitment for the block, which is required to be fulfilled by May 2015.
WA-503-P is situated inboard of the giant Northwest Shelf gas field complex and on trend with numerous oil and gas discoveries, including the Legendre and Hurricane fields. The Legendre Field produced more than 40 MMbbl before decommissioning, and Hurricane is thought to be of a comparable size.
Two wells have been drilled within WA-503-P to date, confirming the presence of reservoir targets and a working oil system, and Neon Energy has acquired recently released data for the Hoss-1 well, drilled by Apache Energy in 2012. Hoss-1 was drilled near the northeastern boundary of WA-503-P, and encountered significant oil shows in M. Australis sandstone over a100-m (328-ft) gross interval.
The company has identified a number of additional exploration leads based on existing 3-D seismic data, all of which will be targeted by the new broadband 3-D seismic program.
Block WA-503-P was awarded with a six-year term. The initial three-year primary term includes the commitment to license minimum 80 sq km (31 sq miles) of new broadband 3-D seismic data (within year one) and complete various geological and geophysical studies. The secondary term is optional and includes an associated commitment to drill one exploration well. The value of the contract with CGG is about $1.3 million.
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