Petroz NL succeeds in Timor Sea

Petroz NL succeeds in Timor Sea

SYDNEY (Reuter): Oil and gas producer and explorer Petroz NL
said yesterday its Bayu-Undan 4 appraisal well in the Timor Sea
zone of cooperation had been successful, intersecting a 80 metre
gas-hydrocarbon column.

"The Bayu-4 well was drilled to a total depth of 3,308 metres
and intersected an 80 metre gross hydrocarbon column, with the
same gas/water content to that encountered in other wells drilled
on the field," Petroz said.

"A multiple-phase drill stem test of four zones flowed at a
combined rate of 14 million cubic feet per day of gas and 580
barrels per day of condensate on a 56/64 inch choke with a
wellhead pressure of 990 pounds per square inch," it said.

Petroz said well operator Phillips Petroleum Co had said the
results confirmed the northern reaches of a significant reservoir
and enhanced efforts to determine the commercial viability of the
project.

Options

Petroz quoted Oryx Energy of the United States as saying the
co-venturers were studying various options for the liquefaction
of the gas and recovery of the liquids.

Participating in the venture are Phillips with 60 percent;
Oryx Energy, 25 percent; and Hardy Oil & Gas Plc, 15 percent.

A seismic survey and a fifth well was being planned for the
field in the fourth quarter of 1996, Petroz said.

Bayu-4 is the fourth well drilled on the ZOCA 91-13
(Indonesia/Australia) side of the Bayu-Undan field and the eighth
well drilled on the Bayu-Undan structure as a whole.

All eight wells have been successful, Petroz said.

Petroz said it was making the announcement because a portion
of the Bayu-Undan gas/condensate field lies within block ZOCA 91-
12, in which Petroz holds a 14.95 percent interest.