Chevron said it encountered a natural gas pay in the Kentish Knock South-1 exploration well off the coast of Western Australia that measured 246 feet. The deep-water well marked the 20th discovery for Chevron in the region since 2009.
"The Asia-Pacific region is key to Chevron's growth strategy and our strong Australia natural gas portfolio continues to be bolstered by our strategic approach to finding and developing resources that will help meet the growing energy needs in the region," Chevron Vice Chairman George Kirkland said in a statement.
Chevron is working to develop its giant Wheatstone LNG project in Western Australia. Construction started last year.
Economic growth in Asia suggests a regional increase in the demand for natural gas. Japan started taking on more natural gas in the wake of the Fukushima Daiichi nuclear disaster in 2011.
First gas is expected by 2016 from Wheatstone LNG. Japan is to get 400,000 tons of liquefied natural gas per year from the project.