Gulf Energy Applies for Further Suspension and Extension of Q/23P
Gulf Energy Pty Limited (Gulf Energy) has applied to the National Offshore Petroleum Titles Administrator (NOPTA) for a further suspension and extension of the period in which to fulfill the current permit work obligations, namely the drilling of an exploration well. The Q/23P permit obligations currently require an exploration well to be drilled in Q/23P by 17 August 2022.
Gulf Energy was obliged to take this step because of difficulties with securing a suitable jackup drilling rig to drill the exploration well (Lion-1). The Company has retained the services of Perth-based Aztech Well Construction (Aztech) to design and manage the drilling of the well. Aztech has informed us that there are only two offshore jackup drilling rigs in Australia, and their owners have indicated that, in the near term they are not able to commit to a contract to drill the exploration well for Gulf Energy. Aztech searched overseas for suitable jackup drilling rigs, but none were available on satisfactory terms or within an acceptable time frame.
Factors Influencing Timing
The timing of the drilling of Gulf Energy is constrained by two important factors:
The Prawn fishing seasons
Prawn fishing takes place in the Gulf of Carpentaria from April to mid-June and from August to November each year. While Q/23P is well out to sea and away from the prawn traditional fishing areas, Gulf Energy, being prudent and conscientious, does not want to conduct offshore operations such as drilling during the fishing season.
The cyclone season
The northern Australian cyclone season occurs from November to April, annually. Given that Lion-1 will be the first well drilled into the Bamaga Basin Gulf Energy again believes it would be prudent not to drill during that period for safety reasons, as well as to avoid consequential operational impediments which could compromise obtaining reliable geological and other important technical information from the well.
Taking the prawn fishing and cyclone seasons into account, the optimal period for drilling Lion-1 is outside those periods, from mid-June to end August. This two-and-a-half-month period allows sufficient time for drilling Lion-1 which is expected to take about 35 days.