Oilex Ltd provides the following operations update for WA-388-P in offshore Western Australia.
Apache Northwest Pty Ltd (“Apache”), the Operator of the WA-388-P permit, has proposed to the Joint Venture to start drilling the first exploration well in WA-388-P in April 2011. The well will target the “La Rocca” prospect in the Intra Mungaroo channel zone. The well had been scheduled to start drilling as early as mid-February but has been delayed due to significant cyclone activity in the North West Shelf area during the first quarter of 2011.
Permit
The WA-388-P permit is located north of the Pluto, Wheatstone, Gorgon and North West Shelf Project fields, offshore Western Australia. The WA-388-P permit contains a portfolio of play types and seven prospects have been identified ranging in potential size from 0.3 to 2.8 trillion cubic feet (TCF) of prospective gas resource (recoverable best estimate, 100% basis). Seismic amplitude anomalies evident in the 3D seismic data are likely Direct Hydrocarbon Indicators, suggesting the presence of gas by analogy with nearby fields and discoveries.
Farm-in
As previously disclosed in November 2010 a farm-in agreement was entered into by the Joint Venture with Apache. Under the farm-in agreement, Oilex farmed out 5.6% of its 14% interest to Apache. Apache will fund 100% of the Joint Venture costs of the first exploration well and, if approved, testing costs (up to agreed caps). The farm-in agreement is subject to Government approval.
The participating interests in the WA-388-P permit after satisfaction of the requirements of the farm in agreement, are set out below.
Oilex Ltd 8.4% Apache Northwest Pty Ltd (Operator) 40% Sasol Petroleum Australia Ltd 18% Videocon Industries Ltd 8.4% Gujarat State Petroleum Corporation Ltd 8.4% Bharat PetroResources JPDA Limited 8.4% Hindustan Petroleum Corp. Ltd 8.4%
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Source:Oilex, March 3, 2011;