Apache Plugs, Abandons Zola Well Offshore AU

Apache Plugs, Abandons Zola Well Offshore AU

Wednesday, April 20, 2011
Tap Oil Ltd.

Tap Oil provided the following update on the Zola-1 exploration well, offshore Carnarvon Basin, Western Australia.

The Zola-1/Zola-1 ST1 well is located in permit WA-290-P, immediately south of the giant Gorgon gas field in the Carnarvon Basin, Western Australia. The well is being drilled in 285m of water.

Data gathered to date in Zola-1 and Zola-1 ST1 has confirmed a significant gas discovery in the Mungaroo formation. The well results indicate that volumetrically the greater Zola structure could be at the upper end of Tap's pre drill estimates of 1 – 2 Tcf.

Progress

During the period from 06:00 hours WST on April 13, 2011 to 06:00 hours WST on April 20, 2011 the wireline logging program was completed and the well is currently being plugged and abandoned as planned.

Forward Plan

Complete the plugging and abandonment of the well as planned and release the rig.

Barring any unforeseen circumstances, this will be the last Zola-1 Well Drilling Update.

Background

The Zola prospect is a very large Triassic tilted fault block on trend with the giant Gorgon gas field and was one of the largest undrilled structural features in the Carnarvon Basin. The well is testing the gas potential of several top and intra Mungaroo formation sands – the primary reservoir at Gorgon.

Located close to existing and developing gas infrastructure, Zola could have multiple potential development options. Any development at Zola could also encompass the overlying Antiope gas discovery (estimated at ~120 Bcf).

WA-290-P Joint Venture Participants

• Tap (Shelfal) Pty Ltd 10.00%
• Apache Northwest Pty Ltd (Operator) 30.25%
• Santos Offshore Pty Ltd 24.75%
• OMV Australia Pty Ltd 20.00%
• Nippon Oil Exploration (Dampier) Pty Ltd 15.00%

Major Gas Find at Apache's Zola Well

Major Gas Find at Apache's Zola Well

Thursday, April 14, 2011
OMV

OMV announced Apache has discovered gas on the North West Shelf of Australia in the Zola-1 exploration well. This represents one of the largest gas discoveries by the company. Zola-1 is located in the WA-290-P exploration permit and is around 100 km from the Western Australian coast. The discovery well Zola-1 and the subsequently drilled sidetrack appraisal well Zola-1/ST-1 have confirmed the existence of sandstone layers with 130 m of net gas pay in an area south of the giant Gorgon gas field. New 3D seismic data will be acquired to further assess the potential of the discovery.

The sidetrack appraisal well to the original Zola-1 discovery well was drilled down to a total depth of 4,713 m (true vertical depth). An extensive wireline measurement and pressure testing program confirmed the presence of gas within several high quality sands of the target Triassic Mungaroo Formation. The well and sidetrack were drilled in a water depth of 285 m and encountered 130 m of net gas pay. Both will be plugged and abandoned as per plan.

In order to further assess the development potential of Zola, OMV and its partners in WA-290-P, Apache (operator), Santos, Nippon Oil Exploration and Tap Oil, have agreed to acquire a new high resolution 3D seismic survey over the permit, which is likely to commence mid 2011.

Jaap Huijskes, member of the OMV Executive Board responsible for Exploration and Production (E&P), stated, "Zola-1 is one of OMV's biggest gas discoveries and is the result of a successful and safely carried out exploration and appraisal drilling campaign. We are very
proud of OMV's exploration activities in Australia, which have culminated in this significant discovery on the North West Shelf. The next step will be to further appraise the gas discovery, including the acquisition of a new 3D seismic survey."
Balanced international E&P portfolio

In 2010, OMV's oil and gas production was 318,000 boe/d and its proven reserves were about 1.15 bn boe at year-end. In its core countries in Romania and Austria, OMV is focusing on reducing the natural decline and on enhancing the recovery rates from mature fields. Future growth is expected to come via new field developments, exploration and acquisitions internationally. OMV intends to grow the existing portfolio to and beyond critical mass, on a production per country basis, and is looking to find new growth areas within the Caspian, Middle East and North Africa regions where OMV can leverage on its existing E&P exposure.

WA-290-P Joint Venture

* OMV Australia: 20%
* Apache (operator): 30.25%
* Santos: 24.75%
* Nippon Oil Exploration: 15%
* Tap Oil: 10%

Apache Hits Gas Pay at Zola

Apache Hits Gas Pay at Zola

Monday, April 04, 2011

Santos Ltd.

Santos announced that the Zola-1 exploration well in WA-290-P, located in the Carnarvon Basin offshore Western Australia, has intersected over 100 meters of net gas pay sands over a 400 meter gross interval in the primary target, the Mungaroo formation.

Wireline logging and pressure testing completed over the weekend has confirmed the net gas pay and the high quality of the reservoir sands.

The Zola-1 well is located 27 kilometers southwest of Gorgon-1, with a water depth at location of 280 meters. The discovery is on trend with the Gorgon gas field and is situated near existing and developing gas infrastructure.

Santos Vice President Exploration and Subsurface, Trevor Brown said Santos will be working with partners to quickly appraise this discovery.

"Zola is in a terrific location and is a significant gas discovery for Santos and Western Australia," Mr. Brown said.

Santos Vice President WA & NT, John Anderson added the company would commence discussions with partners on development options for this resource.

"The Zola discovery adds to the company's strong asset base in Western Australia. This is the first well in an exciting drilling program this year for Santos in Western Australia," Mr. Anderson said.

Following completion of operations at Zola, the Stena Clyde drilling rig will move to Finucane South, Santos' next exploration well in the Carnarvon Basin.

Santos holds 24.75% of WA-290-P. Apache (operator) holds 30.25%, OMV Australia 20%, Nippon Oil Exploration 15% and Tap Oil 10%.