News of Browse Basin oil province discovery welcomed

31/1/97

Resources Development Minister Colin Barnett has welcomed the announcement that a potential new oil province has been discovered in the Browse Basin off the West Kimberley coast.

Mr Barnett said that he had been informed that Shell Development (Australia) Pty Ltd, as operators of the WA-241-P permit, 400km north of Derby, had discovered the promising province.

In partnership with Chevron Asiatic Ltd (25 per cent) and Cultus Timor Sea Ltd (25 per cent), Shell had drilled three wells in Cornea 1, 1A and 1B and an appraisal well, Cornea 2. Oil and gas had been discovered in comparatively shallow water and was being assessed.

Cultus Timor Sea Ltd made an announcement of the discovery to the Australian Stock Exchange this morning and said that while the information retrieved so far was positive in respect to an oil and gas discovery, it had drawn no conclusions as to the extent of the accumulation.

Mr Barnett said that if further extensive testing proved positive, the discovery had the potential to provide significant economic benefits to the Kimberley region.

"These types of discoveries are promising and I will be following the progress of the assessments closely," he said.

"The fact that oil has been discovered raises hopes that more oil and gas will be discovered in the Basin, which currently has seven granted permits.

"If subsequent testing proves up its significance, I would hope this discovery foreshadows the development of what would be the second significant oil and gas industry development off the Western Australian coast, alongside the Carnarvon Basin off Karratha."

Media contact: Justine Whittome (09) 222 9699