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Harriet Joint Venture (KUFPEC: 19.28%)
Net production in the Harriet Joint Venture averaged 3,591 boepd in 2010 compared to 3,479 boepd in 2009. This total was achieved despite the complete absence of drilling activity in 2010. Three new wells and a new 3D seismic survey have been budgeted for 2011.
Mutineer-Exeter (KUFPEC: 33.4%)
During 2010, net production in the Mutineer- Exeter Field declined to 1,724 boepd compared to 2,736 boepd in 2009. This decline was the result of the failures of the down hole submersible pumps installed on the producing wells. As a consequence of this, the producing wells were initially shut-in but some were later started on free flow production at reduced rates. Two work-overs scheduled for 2010 were delayed into 2011 when a rig will be available.
WA-356-P (KUFPEC: 35%)
In 2010, exploration and appraisal drilling continued in the Julimar and Brunello areas. Successful wells drilled in 2010 were Julimar SW-1, Julimar SW-2, Balnaves-3 and Balnaves-4. The Balnaves oil development is to be evaluated as a separate project and a further delineation well, the Balnaves Deep-1 well, has been scheduled for drilling in early 2011. The Balnaves FEED study for a possible oil development in B20 sandstone is to be initiated in 2011.
The Joint Venture finalized the location of the 5 graticular blocks for the Production License and Development Plan Application for WA-356-P. The blocks were approved by the Government. The Preliminary Development Plan for WA- 356-P, which is to supply gas to Wheatstone LNG Development, was completed and submitted to the Government. This Plan contained the key Class 2.5 Cost Estimate.
KUFPEC intends to develop the WA-356-P gas reserves through the Wheatstone LNG project. Several project milestones and key elements were achieved during 2010 in preparation for the Final Investment Decision into the Wheatstone LNG hub which will be operated by Chevron.
Serveral Wheatstone LNG Project Agreements were signed at a ceremony that took place 9th December in Perth.
In 2010, several LNG purchasers commenced due surdiligence and negotiations on LNG Sales and Equity Purchase with the WA-356 Joint Venturers. As a result of this, a number of Heads of Agreements have been finalized and signed. LNG Sales and Equity Purchase meetings will continue with LNG off-takers in 2011.
To comply with State regulations, the Wheatstone Environmental Impact Study was released for public comment in late 2010. In 2010 also witnessed the signature of Wheatstone Native Title Agreements.
WA-191-P (KUFPEC: 33.4%)
The exploration well Finucane South-1 is scheduled for drilling in mid 2011. This well will delineate additional possible reserves which will form the basis of a joint development of the Fletcher oil discovery. If successful, the development project may be tied-back to Mutineer-Exeter Field.
WA-335-P (KUFPEC: 24.5%)
This Permit was partially farmed-out to BHP in 2009. As part of the farm-out agreement, BHP acquired a new 3D seismic survey 2010. A decision will be made in 2011 whether to drill a well.
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