Cooper Energy reported Friday that it has entered into non-binding agreements to acquire substantial interests in the prospective and well-located offshore Gippsland Basin permits Vic/P41 and Vic/P68.
Cooper Energy has agreed terms of agreements with Bass Strait Oil Company Limited under which it may acquire 25.8 percent in Vic/P41 and 50 percent in Vic/P68 by funding the reprocessing and merging of multiple 3D seismic datasets and QI/AVO1 analyses.
The reprocessing and analysis is anticipated to cost approximately $1 million.
The agreement with Bass Strait Oil Company follows Cooper Energy’s acquisition of a 19.9 percent shareholding in the company in 2012. Cooper Energy Managing Director David Maxwell said “the shareholding and the farm-in agreements are part of Cooper Energy’s strategy to concentrate resources on opportunities in the Eastern Australian energy market that possess strong commercial fundamentals.
“The agreement with Bass Strait Oil Company gives Cooper Energy the opportunity to acquire a deep understanding of the sizeable gas prospects that lie within Vic/P41 and Vic/P68 at a low cost for a material interest position” said Maxwell. He noted “the Gippsland Basin permits are close to existing infrastructure and well located for available gas supply opportunities”.
Under the terms of the Vic/P41 agreement, Cooper Energy will reprocess and merge multiple 3D seismic datasets and selected QI/AVO1 analyses, including 166 square miles (430 square kilometers) within the permit. In consideration for the Bass Strait Oil Company share of the work to be undertaken, Bass Strait Oil Company will assign a 25.8 percent working interest in the permit to Cooper Energy. Bass is operator of the agreement with 64.565 percent. Partners include Oil Basins with 17.935 percent and Strategic Energy with 17.5 percent.
The agreement is subject to waiver of, or failure to exercise, pre-emptive rights by the other VIC/P41 Joint Venture participants and obtaining government approvals.
Under the terms of the Vic/P68 agreement, Cooper Energy will undertake, at its sole cost, reprocessing and merging of multiple 3D seismic datasets and selected QI/AVO analyses, including 98 square miles (255 square kilometers) within Vic/P68. On completion of the reprocessing and data interpretation, Cooper Energy will have the option to acquire a 50 percent interest in Vic/P68 at no further cost. Bass Strait Oil Company will be provided with a copy of all reprocessing work undertaken by Cooper Energy. Bass holds 100 percent interest in the agreement.
The proposed transactions are conditional on Cooper Energy and Bass Strait Oil Company entering into formal documentation for both transactions.
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