Bow Energy Expands Surat Basin Acreage
Bow Energy has increased its Surat Basin portfolio by purchasing a 100% direct working interest in Authority to Prospects (ATPs) 664 and 708.
The ATPs now give Bow a continuous acreage position in the western Surat Basin which overly the Triassic and Jurassic aged stratigraphic subcrop and onlap edges (see attached figure). Several oil fields have been discovered adjacent to and along these stratigraphic edges including the recent oil discovery at Donga-3 (Bow 42.5%). Bow interprets the potential for additional oil discoveries along this stratigraphic trend. Following this acquisition, Bow now has the largest gross land position overlying the western Surat late Triassic to Jurassic oil fairway.
Bow has acquired 100% equity in ATP 664P and ATP 706P from Tri-star Petroleum in exchange for $200,000 cash. Tri-star has retained a 3.125% overriding royalty which can be converted to a 10% working interest after payout of past costs. Bow will operate the permits.
Bow intends to participate in the drilling of at least two exploration wells within its western Surat holdings in the next 12 months. This drilling is in addition to planned appraisal drilling on Donga-3 which is conditional on the long term flow test of this well. Equipment procurement for the flow test is progressing and testing is due to commence in January, 2006.
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