Chevron confirms further natural gas discovery off the coast of Australia

10/26/2012

Chevron confirms further natural gas discovery off the coast of Australia

BY DEBBIE CAI

PERTH -- Chevron confirmed a further natural gas discovery in the Gorgon area off the coast of Australia, boosting the oil company's LNG project in the region. The Satyr 4 exploration discovery well, located about 75 miles northwest of Barrow Island off the Western Australia coast, confirmed about 220 feet of net gas pay.

Chevron, the world's second largest oil and gas producer by market value after Exxon Mobil, said in September that a discovery well in the area confirmed about 128 feet of natural gas pay.

A string of gas discoveries off the Western Australia coast over the past two years has boosted confidence that Chevron can expand the Gorgon project beyond its initial annual output capacity of 15.6 Mmt of LNG.

Chevron Australia holds a 50% interest in the permit area where the discovery is located. Shell Development Australia and Mobil Australia Resources each hold 25%. Chevron, which is slated to report third quarter results, earlier said it expects its profit for the period to fall significantly due to Hurricane Isaac's impact on oil production.

Dow Jones Newswires

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