Giant Oz Beehive Prospect Work Program Approved

The Total-funded giant Beehive prospect offshore north-west Australia has had the deadline for its work permit suspended which will provide flexibility to the program and support the potential drilling of the first exploration well in what is one of the largest undrilled hydrocarbon structures in the country, Melbana Energy said September 4.

“The suspension of the deadline for completing the current permit year’s work obligations combined with the previously secured crediting of the Beehive 3D seismic survey against the future Year 4 work commitment provides work program flexibility as we prepare to analyse the acquired Beehive 3D seismic data and anticipate the potential exercise by Total and/or Santos of their option to drill the Beehive-1 exploration well,” Melbana’s CEO Robert Zammit said.

The National Offshore Petroleum Titles Administrator gave the approval to suspend the deadline for the completion of the current permit year, delaying it by 15 months to December 21, 2020, the company said.

Total and Santos have an option (exercisable together or individually) to acquire a direct 80% participating interest in the permit in return for continuing to fully fund the costs of all activities until completion of the first well in the WA-488-P permit. The option can be taken at any time but no later than six months from the receipt of processed seismic survey data, 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 said.