Australian energy company WHL Energy Limited (WHL Energy or the Company) reported Monday that the final Seismic Volume Report for the La Bella 3D seismic survey acquired in the Otway Basin permit VIC/P67 offshore Victoria, Australia has been received on schedule and provided to the VIC/P67 JV partners, AWE Limited (AWE) and Tap Oil Limited (Tap).
The fully processed Seismic Volume Report has been compiled by contractor CGG Services SA over the past seven months following the successful acquisition of the 358 square miles (928 square kilometers) La Bella 3D seismic survey in the VIC/P67 permit located in the offshore Otway Basin, Victoria in late 2013.
Under the terms of a farm-out agreement reached between WHL Energy and AWE (see ASX announcement Sept. 3, 2013) the latter earned the ability to earn up to 60 percent equity in VIC/P67 by funding 75 percent of the cost of the La Bella 3D seismic survey up to a cost cap of $9.0 million. Following review of the seismic data AWE has the right to surrender its interest in the permit or to commit to drilling two exploration wells at either 30 percent or 60 percent working interest. If AWE elects to enter the drilling phase it will also assume Operatorship of VIC/P67.
AWE now has 60 working days being until Oct. 24, to review the report and to elect to take up its option to become operator of the VIC/P67 permit.
Under the terms of a separate farmout agreement executed with Tap (see ASX announcement Sept. 18, 2013), Tap has an option to acquire an initial 10 percent interest in VIC/P67 by paying up to a maximum of $2.95 million of the La Bella 3D seismic survey costs. Tap is not required to exercise the seismic option until 10 days after AWE confirms whether it wishes to elect to enter the drilling phase.
In the event the seismic option is exercised, Tap has an option to acquire an additional 5 percent interest in VIC/P67 by paying a total of 20 percent of the cost of the first commitment well, capped at a gross well cost of $35 million.
Commenting on the receipt of the final Seismic Volume Report and its distribution to the VIC/P67 JV participants, WHL Energy Managing Director, David Rowbottam, said: “WHL is pleased to have received the final Seismic Volume Report on time and on budget and to have now handed that highly valuable and detailed information to AWE and Tap for their further assessment.”
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