Anadarko to Fund Seismic Survey in Timor Sea
|Tuesday, July 31, 2001
Indo-Pacific Energy Ltd. and Anadarko Petroleum have reached an agreement regarding exploration permit AC/P26 in Australia's offshore Timor Sea region, in which Indo-Pacific presently holds a 50% equity. Under this agreement Anadarko will fund 100% of the costs of acquiring and processing a 120 mile 2D seismic survey over the Rossini Prospect, in the eastern portion of AC/P26, in order to hold an option to earn interest in AC/P 26 by drilling a well on Rossini or the Anson West prospect. Anadarko will have 30 days from receipt of the processed seismic data in which to exercise the option to drill an exploration well in the permit, and if it exercises this option it shall fund 100% of the costs of drilling and flow-testing the well, and shall refund a proportion of past costs incurred by Indo-Pacific and its partners in the AC/P26 permit. Anadarko shall then have the right for a period of 90 days after completion of the well to take up a 75% equity in the permit, which would reduce Indo-Pacific's share in the permit to 12.5%. The Rossini seismic program is expected to be conducted shortly, and any drilling program in AC/P26 is likely to occur by early 2002.