Melbana Tips First Drilling at Oz Beehive by 2020

The final data set from the 3D seismic survey at the giant Beehive prospect offshore north-west Australia is expected by early February next year with first drilling expected no later than 2020, Melbana Energy said November 1.

“Melbana has reviewed early data products from the Beehive 3D Seismic Survey and is pleased to advise they are of an excellent quality for this stage in the processing exercise,” the company said.

Total and Santos have an option, together or individually, to acquire a direct 80% participating interest in the permit in return for fully funding the costs of all activities until completion of the first well. In the event of a commercial discovery Melbana will repay carried funding from its share of cash flow from the Beehive field. It’ll have no re-payment obligations in the event there is no commercial discovery and development.

Total and/or Santos can take the option at any time but not later than six months from the receipt of the final processed seismic survey data.

“If the option is exercised, drilling would be expected to be no later than 2020 with Melbana estimating the Beehive-1 exploration well cost is indicatively in the range of $40-$60 million,” Melbana said.

The Beehive Prospect has been assessed by petroleum consulting firm McDaniel and Associates to contain a best estimate prospective resource of 388 million barrels of oil equivalent, Melbana has said.

It is potentially the largest undrilled hydrocarbon prospect in Australia, the company says.