The majority of wells on the field have been drilled on the flank of the Mereenie anticline to intersect reservoir sands within the oil rim. Only eight of the sixty-two wells have been located on the structural crest specifically to produce gas. Even though drilling has focused on the oil rim, the field’s production and commercial history has favoured gas production for sales.
In April 2013, with oil prices over $100 per barrel, Santos committed to an extensive appraisal and development drilling program targeting oil whilst also evaluating natural gas resources. As at the end of the first quarter of 2014, Santos had completed the drilling of four oil wells, and these will be connected to existing infrastructure for production.
The objective of the joint venture now is to maximise gas reserves at Mereenie and deliverability available for the proposed North East Gas Interconnector (NEGI). This will create new markets for presently discovered conventional gas and provide incentive to fully develop the field’s potential, as well as explore surrounding acreage.