Roc Oil Enters Farmout Agreement with Wandoo Petroleum
In conjunction with two of its co-venturers in WA-286-P, Roc Oil has entered into a farmout agreement with Wandoo Petroleum Pty Ltd, a subsidiary of Mitsui. Wandoo will acquire a 15% interest in WA-286-P by providing Roc with an effective carry for approximately 30% of the anticipated cost of drilling the next well in the permit, Cliff Head-1. Subsequent to the farmout being completed, Roc will hold a 30% interest in WA-286-P and will have funded 30% of the cost of the Cliff Head-1 well. When the farmout is complete Wandoo will hold in total a 25% interest in the permit as a result of the farmout arrangement with Roc and farmouts on identical terms from two other WA-286-P participants.
The Roc-operated WA-286-P permit is located in the northern part of the offshore Perth Basin. The Joint Venture expects to drill the Cliff Head-1 well with the Ensco 56 jack-up drilling rig in late December 2001. The exact timing of the well is subject to operational conditions and the timely completion of the drilling program that the rig will be working on immediately prior to being mobilized to the Cliff Head-1 location. Water depth at the Cliff Head-1 location is approximately 50 feet and the planned total depth of the well is 4,920 feet. The prospect, which represents a play type which has not been drilled previously in the offshore Perth Basin, has the potential to contain a significant amount of oil and/or gas. Co-venturers in WA-286-P are Roc Oil as operator with 45 percent interest; AWE Oil with a 40 percent interest and ARC Energy NL holding the remaining 15 percent.