31-07-02 BHP Billiton might have struck another commercial oil find in the Gulf of Mexico, with the resource giant confirming better-than-expected results from a new drilling program. BHP Billiton plans to move ahead with further testing of the Neptune-3 appraisal well, located in the deep-water Atwater Valley region, after encountering a 450-feet gross hydrocarbon column, featuring 130 feet of net oil pay in one zone.
An additional 20 feet of net oil pay was also found in a younger reservoir. The find was also important for Woodside Petroleum, which recently acquired a 20 % stake in the project.

The Gulf of Mexico represents a growth area for BHP Billiton's petroleum unit. The resource giant earmarked more than $ 2.3 bn this year as part of a joint venture to develop the deep-water Atlantis and Mad Dog fields both in the Atwater Valley.
Combined, BHP's Atlantis and Mad Dog discoveries have estimated reserves of 925 mm barrels of oil. BHP Billiton is the operator of Neptune-3 with a 50 % interestin the project, while Woodside and United States-based Marathon Oil are the other partners.

"This is a positive outcome," BHP Billiton's president of deep-water discovery and appraisal, Steve Bell, said. He said the partners knew there had been some oil in the reservoir but previous results suggested that it was likely to flow slowly and would not sustain a commercial operation.
"However, with this result we have not only confirmed the oil column but also demonstrated that the hydrocarbons have significantly better flow properties, offering the potential for development."