Subject: Upstream online: more oil found in JPDA

Eni flags up Kitan-1 find

By Upstream staff , 10 March 2008

Italian giant Eni has confirmed that the Kitan-1 exploration probe, drilled in Block 06-105 in the joint petroleum development area between East Timor and Australia, hit oil.

Upstream broke the news of the find last week.

The semi-submersible drilling rig Songa Venus drilled Kitan-1 to a total depth of 3568 metres, with Eni saying in a release that the well "highlighted a significant presence of hydrocarbons".

The well flowed 6100 barrels of oil per day in initial tests, but sources told Upstream last week that Kitan-1 has the potential to flow at higher rates.

Eni said in a release that well data is being analysed to assess the size of the Kitan-1 find.

Eni has already spudded the Kitan-2 appraisal well, which lies 1.7 kilometres east of the discovery well.

The Italian player operates Block 06-105 with a 40% stake. Its partners are Japan's Inpex (35%) and Canadian player (25%).


Italian giant makes find near Kuda-Tasi and Jahal prospects

Eni notches up Timor Sea oil hit

By Russell Searancke, Upstream Online, 07 March 2008

Eni of Italy has struck oil close to the marginal Kuda-Tasi and Jahal fields in the offshore area shared by East Timor and Australia.

The Kitan-1 exploration well flowed at 6100 barrels of oil per day during intermittent testing, according to sources, and the probe has the potential to flow at rates in excess of those already achieved.

The well was drilled using the Norwegian semi-submersible drilling rig Songa Venus.

It is early days yet but the find will boost the prospects of a joint development with Kuda-Tasi and Jahal.

Eni has already spudded the Kitan-2 appraisal well, which is 1.7 kilometres east of the discovery well.

The Italian giant and the Japanese operator Inpex are sharing the Songa Venus until late October at a cost of $225,500 per day.

They have both been using the 1500-foot water depth rig since the middle of November 2006.

The Kitan field and the existing Kuda-Tasi and Jahal finds are located in the joint petroleum development area, Block 06-105.

Eni bought Woodside Petroleum's 40% operating stake in the block in late 2007. Woodside made a A$16 million ($14.76 million) gain on the sale.

Woodside tried for several years to make Kuda-Tasi and Jahal a commercial opportunity, but was let down by an appraisal well in late 2006.

The contingent resource or potentially recoverable oil volume at Kuda-Tasi and Jahal at the end of December 2004 was 19 million barrels, according to Woodside.

Sources said Eni bought the acreage with the clear ambition to commercialise Kuda-Tasi and Jahal, and to drill wells.

Eni's co-venturers in the block are Japan's Inpex (35%) and Talisman Energy (25%).

A new oilfield discovery will be well received by impoverished East Timor, which receives 90% of all petroleum production taxation revenue in the joint area. Australia receives 10%. Eni is growing its business in Australia and in the Timor Sea, where it has built up a large exploration portfolio in recent years.

It has a 12% non-operating stake in the producing Bayu-Undan gas and condensate field and the Darwin LNG project, which liquefies gas from Bayu-Undan. Eni's only other production in the southern hemisphere is from the 65%-operated Woollybutt oilfield.

In addition, Eni owns 100% of the Blacktip gas field, which is under development, near the north Australian coast, and several undeveloped fields, including Polkadot-Penguin, Rubicon and Prometheus.

The Italian giant has five exploration blocks in East Timor's exclusive waters north of the joint area.

When awarded that acreage in late 2006, Eni said it had "achieved the objective of increasing its presence in the North West Australian Shelf".

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