The Directors of Mermaid Marine Australia Limited (MMA or Company) announce that the Company has been awarded a contract with Santos Limited in respect of the “Mermaid Ranger” for the provision of offshore marine support to Santos’ Modec Venture 11 (MV 11) floating production, storage and offloading (FPSO) facility in the Carnarvon Basin.
The contract is for a term of two years firm with three x 12 month options and is due to commence in March 2013. The “Mermaid Ranger” is a 40 metre OSV built in 2007 and purchased by MMA in 2010.
The contract value is approximately A$15 million for the firm period with further upside should the options be exercised.
The MV 11 FPSO services the Mutineer-Exeter fields and will also service the Fletcher Finucane fields once developed. The Finucane South-1A discovery underpinning the Fletcher Finucane project was made in May 2011 and is located approximately seven kilometres to the South of the Fletcher oil field and 16 kilometres East of the MV 11 FPSO at Mutineer-Exeter. The project involves the development of a three-well sub-sea tie back to MV 11 FPSO. The project is expected to extend the economic life of Mutineer-Exeter by up to four years, with an estimated average gross production rate of 15,000 barrels per day for the initial 12 months. Gross proved and probable reserves are estimated at approximately 14 million barrels.
The $490 million Fletcher Finucane project was sanctioned by the Joint Venture Partners on 13 January 2012, with development drilling commencing in June 2013, and first oil is expected in the second half of 2013.
[mappress]
Press Release, October 16, 2012