Chevron Australia Pty Ltd - an affiliate of
) - announced the discovery of natural gas in Satyr-4 exploration
well in the Greater Gorgon Area, offshore Western Australia.
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Located in the WA-374-P1 permit block in the Carnarvon Basin, the
well is estimated to hold approximately 220 feet of net gas pay.
The well, about 75 miles to the northwest of Barrow Island, was
drilled 3,570 feet deep into water and to a total depth of 15,023
The Australian unit of Chevron acts as the chief operator of the
block with 50% interest, while the remaining stake is shared
Royal Dutch Shell plc
Exxon Mobil Corporation
We believe that this exploration success will boost Chevron's
growth prospects in Australia by adding to its already
significant gas interests in the country.
Earlier in September, the company announced the discovery of
natural gas in Satyr-2 exploration well in the Greater Gorgon
Area, which marked Chevron's fifteenth find in the country since
In particular, the drilling success of the Satyr-4 exploration
well is expected to support an expansion of the Chevron-operated
multi-billion Gorgon liquefied natural gas (LNG) project.
The Gorgon gas fields, off the coast of Western Australia, are
estimated to contain 40 trillion cubic feet of gas deposits with
an expected economic life of at least 40 years from the time of
start-up. According to Chevron, the venture will have an annual
capacity to produce 15 million tons of LNG, with the first
shipment expected in 2014.
We believe that successful drilling activities along with these
prominent projects will establish Chevron as a leader among
natural gas and LNG suppliers in the Asia-Pacific belt.
Chevron currently holds a Zacks #3 Rank (short-term Hold rating).
We also maintain a long-term Neutral recommendation on the