Pilot Energy Ltd., a junior oil and gas exploration company, provided Thursday an update on its activities on exploration permit WA-507-P in the Northern Carnarvon Basin off the Northwest Shelf of Australia.
The firm, which is the field operator, made a final payment of $841,500 for the 3D seismic license for permit WA-507-P and its surrounding area to TGS-NOPEC Geophysical Company Pty Ltd. (TGS), after negotiating a discount of $71,000 for early settlement of the fee. The 2,459 square mile (6,368 square kilometer) "Gnaraloo/Cazadores" multi-client dataset was licensed by Pilot Energy upon acquiring the interest in WA-507-P and reveals the presence of three very large structures, prospective for oil and/or gas.
Pilot said licensing of the data is the main work commitment under the three year primary term of the permit, ending Nov. 16, 2017, while the secondary term comprises geological and geophysical studies in years four and five, with an exploration well to be drilled in year six.
"With a 'drill-or-drop' decision not required until November 2019, Pilot Energy has ample time to introduce a farmin partner to fund drilling of the well," the company said in the press release, adding that it is now in discussions with a number of potential farminees in the current challenging market although it is confident of its position in the permit.
Independent consultant Gaffney Cline & Associates (GCA) has assessed that WA-507-P has a best case prospective resources of 1,581 million barrels of oil and 10,047 billion standard cubic feet of gas.
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