The directors of Victoria Petroleum N.L. (Vicpet) announced that Vicpet has entered into agreements with Mosaic Oil NL (Mosaic) for a staged farm-in program consisting of infill seismic acquisition and the drilling of up to three earning wells in Vicpet's southwest Surat tenements in Queensland.
In the first stage Mosaic will fund 70% of a $640,000 2D infill seismic and post farm-in pro-rata share of a 200 km seismic reprocessing program to earn the option to fund 46.667% of a well in the Stratton Block of ATP 608P to earn 35% equity in the Block. Mosaic is to fund 100% of the costs for 300 km of additional seismic reprocessing in other Vicpet tenements in the southwest Surat Basin areas to earn the option to fund 70% of the costs of well in Rookwood Block of ATP 608P (excluding the Rookwood Oil Field) to earn 35% equity in that Block Mosaic will also have the option to fund 100% of a well in the ATP 805P Southern Blocks (excluding the Donga Oil Field) to earn 50% equity in each tenement drilled.
After the Mosaic farm-in is completed, Vicpet will retain 15.6% equity in the Stratton Block of ATP 608P, 19.297% working interests in the Rookwood Block of ATP 608P, 7.5% of ATP 805P Southern Blocks.
Mosaic will operate the farm-ins and continue as operator in all tenements where it earns equity. Agreed exclusion areas around the Donga and Rookwood Oil Fields are not included in the Mosaic farm-in. Vicpet retains 29.688% and 15% working interest respectively in the fields.
"Vicpet is extremely pleased to have Mosaic as a farm-in partner of choice for its oil interests in the Surat Basin," said Vicpet's Managing Director John Kopcheff. "Not only does Mosaic continue to be a successful Surat explorer and operator, it has access to competitively priced petroleum services and owns substantial Surat Basin infrastructure. Vicpet considers that Mosaic is the most cost effective and efficient oil and conventional gas exploration and field operator in the Surat Basin. Mosaic will also bring new ideas and expert Surat Basin skills to the joint ventures as the new operator. While the Mosaic farm-in oil exploration program is taking place, Vicpet will continue its aggressive coal seam gas development program in its coal seam gas areas to the north with operators QGC, Bow Energy and Roma Petroleum."
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