The wildcat gas well is to be drilled to a depth of 826 meters in commonwealth waters, about 55 km (34 miles) east of the city of Newcastle. The well is located in Petroleum Exploration Permit 11, operated by Advent subsidiary Asset Energy.
The well is expected to spud in early December, but the exact timing will be finalized shortly, said David Breeze, executive director of Advent shareholder MEC Resources. Advent is an unlisted oil and gas explorer, whose major shareholders include MEC, BPH Corporate and Grandbridge.
Asset Energy has contracted the Ocean Patriot rig for the drilling of New Seaclem-1. The well is expected to cost around A$20 million ($19.8 million), Breeze added.
New Seaclem-1 is targeting natural gas in interpreted tertiary sandstone reservoirs of the Great White and Marlin prospects. Previously, Tanvinh Resources reported undiscovered prospective gas in place resource estimates of 1.16 Tcf for Great White and 2.97 Tcf for Marlin at the P50 or "best estimate" level, Advent said.
The estimate of total prospective recoverable resources for the PEP11 permit was recently upgraded to 13.2 Tcf.
Following completion of New Seaclem-1, Advent will increase its interest in PEP11 from 25% to 85%. The stake held by permit partner Bounty Oil and Gas, which is free-carried through the drilling of the well, will fall to 15% from from the current 75%.
Gas from any discovery off New South Wales could be supplied to the domestic market, but Advent has also held discussions with international companies about the possibility of taking equity stakes in the company, concurrent with a right of first refusal for LNG offtake. Discussions have been held with a number of parties, including Indian state-owned gas distribution company GAIL and other Indian players, as well as potential partners from Europe and elsewhere in Asia, Advent said in a statement earlier this month.
Approval for the New Seaclem-1 well was given following several months of application and independent review process involving the company and government representatives. A second commitment well is due to be drilled 12 months after the first.
