Tap Oil says Tallaganda may hold 500 Bcf of Natural gas

1/29/2013

Tap Oil says Tallaganda may hold 500 Bcf of Natural gas

BY ROSS KELLY

SYDNEY-- A discovery made last year by BHP Billiton and Apache off the coast of Western Australia state could contain around 500 Bcf of natural gas, joint venture partner Tap Oil said.

Although significant, a resource of this size wouldn't be large enough to support construction of a standalone LNG, export terminal on the coast. LNG terminals typically require at least 3-4 Tcf of natural gas to be economically viable. The discovery, however, could be combined with others nearby to support any developments.

Tap owns 20% of the permit containing the discovery, called Tallaganda. The exploration well was completed in April by BHP, which has a 55% stake in the permit. Apache holds the remaining 25%. Tap said there are a number of other prospects that could be considered for further drilling to aggregate gas volumes. However, it said there are currently no plans to drill further wells in the area during 2013.

Dow Jones Newswires

 

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