Titan Clinches Contract to Drill Drover #1 Well in North Perth Basin

Titan Energy (Company) provided Friday this update on its North Perth Basin Exploration Permit (EP) 455, Western Australia.

Joint Venture partner and operator, AWE Limited (AWE) has awarded the Drover #1 drilling contract to Enerdrill Pty Ltd (Enerdrill), a West Australian drilling company (www.enerdrill.com.au).

The “Contract for the Provision of Drilling Rig Services” between AWE, and Enerdrill has been successfully completed. Enerdrill’s Rig 3 has been selected to drill two wells as part of AWE’s appraisal drilling campaign in the North Perth Basin, which incorporates Drover #1, approximately 161.5 miles (260 kilometers) north of Perth, in Western Australia.

On Feb. 6, AWE released an ASX announcement titled “Perth Basin independent resource estimate”” in which, AWE announced “Gross Prospective Gas Resources for EP455 of 2,393 billion standard cubic feet (Bscf)”.

The Drover #1 well is in EP-455 and is part of the Northern Perth Basin unconventional gas play. Drilling is expected to take 28 days to reach total depth, at which time the well will be temporarily suspended for evaluation. Development work will follow, with the aim of inducing commercial gas flows.

AWE has farmed in for an 81.5 percent equity share in EP455 under a Sale and Purchase Agreement (SPA). Under the SPA, AWE agreed to carry Titan Energy through a gross permit expenditure of up to $7 million (AUD 7.5 million) after which AWE will pay 81.5 percent and Titan Energy 18.5 percent of approved work programs and budget expenditure.

The EP 455 permit area is over 109,000 acres; it has both conventional and unconventional prospective targets, and both oil and gas prone formations. The basin is very close to petroleum industry infrastructure, including two major gas pipelines, storage facilities, and refining facilities. This area is well understood with a comprehensive database of well logs, geophysical data, and extensive cores. A recent appraisal of the area indicates significant volumes of undiscovered hydrocarbons in place. Advanced commercial viability studies are now underway.


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