Extended-reach drilling (ERD) is becoming an increasingly common technique used to explore for hydrocarbons and develop fields in areas where simple vertical wells cannot be drilled due to access problems, stakeholder concerns, environmental issues, poor reservoir quality and/or cost. While these types of wells are generally more expensive and technically challenging to drill than vertical wells, they can be very cost-effective, and if a discovery is made, considerably quicker to monetise when future development costs are also taken into consideration, particularly in offshore environments.
In 2014–2015, the conventional Exploration and Production division of Origin Energy (now Lattice Energy) drilled three onshore-to-offshore ERD wells and a geological sidetrack in the Otway Basin with horizontal offsets of 1929, 2576, 4239 and 5152 m targeting an undeveloped gas field (Halladale) and exploration prospect (Speculant) located in Victorian state waters near Port Campbell. The three wells (Halladale-2, Speculant-1 and Speculant-2) and sidetrack (Speculant-2ST1) were drilled during a single drilling campaign from the same pad to reduce mobilisation, drilling and development costs. Halladale-2 was designed to develop the Halladale Field, while Speculant-1, -2 and -2ST1 were designed to evaluate the Speculant Prospect. Both Speculant wells and the sidetrack encountered significant gas columns with Speculant-1 and Speculant-2ST1 subsequently completed as producers after being successfully flow tested. A 33 km onshore pipeline was then constructed to transport the gas from Halladale and Speculant back to the Otway Gas Plant (OGP) for processing and sale.
The arrival of first gas at the OGP from the Halladale and Speculant gas fields on 26 August 2016 marked a significant milestone for Origin Energy in terms of accelerated project delivery. It also represented the end of a 15-year journey for Halladale from exploration to discovery to development. The drilling campaign also set several records in the process with: (1) Speculant being the first offshore field to be discovered from mainland Australia; (2) Halladale and Speculant being the first offshore fields to produce gas back to mainland Australia from onshore wells; (3) Halladale-2, Speculant-1 and Speculant-2 being the three longest onshore-to-offshore wells drilled to date in Australia (in horizontal departure terms); and (4) Halladale-2 being the longest well (in mMDRT terms) drilled to date in the Otway Basin. Speculant is a good example of how transition zone (TZ) seismic and ERD technology can be used successfully to explore and develop resources in areas previously considered too difficult by using more conventional seismic acquisition and drilling technology.