Shell Rejoins Goldie Discovery Operation
|Monday, July 23, 2001
Indo-Pacific Energy Ltd. reports that following analysis of the recent pressure survey at the Goldie-1 well, Shell Oil has elected to exercise its right under the PMP38148 joint venture operating agreement to rejoin the Goldie Discovery operation. This election requires Shell to now pay Indo-Pacific an initial sum of approximately US $750,000; and then to wait while Indo-Pacific takes all of Shell's 59.57% share of net revenues from the Goldie discovery until a premium payment of several times that amount has been reached. This Sole Risk Premium repayment point would take some years to reach if based solely on revenues from the Goldie-1 well, after which Shell's permit interest will receive 59.57% of ongoing revenues. Since the other permit participant, New Zealand Oil & Gas, has elected to not rejoin the Goldie Sole Risk Discovery, the remaining 40.43% share of revenues after repayment of the premium will be to Indo-Pacific's account. The Goldie-1 well continues in production and has produced more than 78,000 barrels of oil up to July 22. Planning is underway for further drilling in the Goldie field, later this year.