CNOOC-Exoma JV Completes 2012 Galilee Basin Drilling Program

CNOOC
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Australia's Exoma Energy announced Monday that the Galilee joint venture has completed its 2012 drilling program in the Galilee Basin, onshore central Queensland, Australia.

The drilling program was finalized through the drilling of the Silverfox-1 exploration well in the ATP-1005-P permit.

The well was drilled to a total depth of 3,841 feet (1170.7 meters) and cutting samples of the Toolebuc shale were collected. The shale samples will be subject to geochemical analysis; it is expected that this information will become available for interpretation in early 2013. The data from this well forms part of the Galilee JV’s assessment of the extent of maturity of the Toolebuc shale as an oil and gas resource.

Silverfox-1 has been suspended as a water monitoring bore and the drilling rig – EDA #1 – has been released.

Commenting on the JV's plans for 2013, Exoma's CEO Rob Crook said that the JV is still in the midst of firming up plans for its drilling program next year.

"Next year's drilling program will likely target new permits that we have acquired in the EromangaBasin. The JV will release details of the 2013 drilling program at the end of this year," Crook told Rigzone.

Exoma and CNOOC entered a farm-in agreement Dec. 9, 2010 which allowed CNOOC to earn stakes in the five oil and gas exploration permits in the Eromanga and Galilee Basins. The five permits cover an area of approximately 10,425 square miles (27,000 square kilometers). Exoma holds a 50 percent stake in each of the permits. CNOOC had invested $51 million (AUD 50 million) into the farm-in agreement.

In September this year, Exoma carried out a supplemental farm-in agreement with CNOOC that will see the Chinese company's participating interest in the Galilee joint venture for oil and gas exploration permits - ATP 991P, ATP 996P, ATP 999P, ATP 1005P and ATP 1008P - increase from 50 percent to 60 percent. CNOOC spent $13 million (AUD 12.7 million) on the supplemental farm-in.

The JV also allows CNOOC to earn participating interests in new oil and gas exploration permits – ATP 1127P, ATP 1130P, ATP 1137P and ATP 1150P – which were awarded to Exoma June 26, 2012. The four new permits lie in the Eromanga and Galilee Basins as well, and they extend across 7,336 square miles (19,000 square kilometers) of land. CNOOC confirmed Sept. 10, 2012, that it will be taking up a 50 percent participating interest in each of the four new permits. 

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