Energy giant Woodside Petroleum is excited about the exploration potential of Myanmar after increasing its estimates for two offshore gas discoveries.
Woodside, which recently shelved its key $50 billion Browse growth project off Western Australia, told investors it had increased its estimate of its resource in Myanmar by 83 million barrels of oil equivalent (MMboe) to 4,481 MMboe.
Chief executive Peter Coleman said analysis of the exploratory well data confirmed the development potential of both discoveries.
"We recognise additional exploration potential in areas immediately adjacent to the discovery," Mr Coleman said.
Further appraisal and exploration of four to seven wells is expected to start in early 2017.
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The Perth-based company, which is exploring for oil and gas around the world, announced two gas discoveries off Myanmar in April.
The company's 2017 drilling program off Myanmar would accelerate options for commercialisation, Woodside said in a presentation to investors on Friday.
The company said its first mover position in Myanmar delivers it a strategic advantage as it explores the deep water Rakhine Basin where Woodside is one of the largest acreage holders.
The oil and gas company plans to drill 11 to 17 wells in 2017/18 off Myanmar, Australia, Africa, Ireland and Canada.
Woodside added that it expects the oil price to remain firm over the next 18 months, and volatility is likely in the short term while a structural change in the oil market was underway.
The global liquefied natural gas (LNG) market would be oversupplied in the short term and a recovery in prices was expected from 2018, the company said.
Woodside Petroleum shares gained nine cents, or 0.3 per cent, to $27.09.
