Chevron Corp. reported that it has had more natural gas drilling success in the Carnarvon Basin offshore Western Australia, which it called the country's "premier hydrocarbon basin."

The Acme-1 exploration discovery well encountered approximately 896 feet of net gas pay, the company said. It is located in the WA-205-P permit area offshore Western Australia approximately 93 miles from Onslow. The well was drilled in 2,880 feet of water to a depth of 15,469 feet.

"In terms of net gas pay, Acme-1 is one of our most significant natural gas discoveries in Australia," said George Kirland, Chevron vice chairman. "As our ninth and largest offshore discovery in Western Australia in the last 12 months, it underscores the quality of our drilling program and our commitment to technical excellence and safe operations."

Chevron's Jim Blackwell, president of the company's Asia Pacific exploration and production unit, noted that Chevron is a leading leaseholder in the Carnarvon Basin. "We expect this discovery to help underpin potential expansion opportunities at the Wheatstone liquefied natural gas [LNG] hub. Adding to our Australian portfolio progresses our long-term plans to build a leading natural gas business in Australia and the Asia-Pacific region."

Last December the major struck a deal with Japan's Chubu Electric Power Co. Inc. for a portion of its share of the LNG to be produced from the Gorgon project off Australia's coast (see Daily GPI, Dec. 17, 2009).

Chevron's Australian subsidiary is the operator of the well and holds a combined 67% interest, while Shell Development (Australia) holds the remaining interest.

©Copyright 2010 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.