Australia's energy exploration company Blue Energy Limited (BUL) announced Tuesday that it has entered into an agreement to farm-out 20 percent of the Company’s 100 percent-owned Marburg oil prospect in ATP854P, Surat Basin, Central Queensland, Australia for a carry of the cost of drilling the Marburg 1 oil exploration well.
The agreement will see KIB Energy Pte Ltd - a wholly owned subsidiary of a prominent and well respected private Singaporean oil trading company - fund a two-stage work program to explore and develop the Marburg oil prospect.
Stage One will see the drilling and evaluation of the Marburg 1 well, which will commence in approximately 10 days, to a planned depth of 2,297 feet (700 meters) in ATP854P within Queensland’s Surat Basin.
The well is targeting the Precipice Sandstone over which mapping has delineated a structural closure with up to 180.4 feet (55 meters) of vertical relief and over an area of approximately 15 square miles (39 square kilometers). Should the well be successful it will be cased and suspended in preparation for completion, testing and production.
Stage Two will involve the completion, testing and production of the Marburg 1 well and all works required to lodge a Production Licence Application over the potential Marburg 1 discovery area. KIB Energy Pte Ltd will provide all funding required for this Stage and up to a maximum of $4.68 million (AUD 5 million) total expenditure for Stages One and Two.
The volumetric estimate of potential mean recoverable oil reserves for the Marburg Prospect is 14 million barrels (mmstb). The volumetric range of reserves is assessed (internally) to be 1.7mmstb (P90) to 35mmstb (P10). This case envisages both gas and oil fill of the structure. However, should the structure be filled with oil only, the upside potential (P10) could be in the order of 80-90mmstb.
Blue Energy’s Managing Director John Phillips, said “the farm-out of the Marburg oil prospect was further confirmation of the Company’s strategy to look beyond the traditional industry players as potential farm-in partners, and seek to further augment BUL’s internal skill sets.”
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