Drillsearch Farms Out 45% Stake in Permit ATP 924P in Cooper Basin
Drillsearch Energy Limited (Drillsearch) disclosed Monday that it has executed an agreement with Beach Energy Limited (Beach) for Beach to farm in to its ATP 924P oil and gas exploration permit in the south west Queensland section of the Cooper Basin.
The agreement extends Drillsearch and Beach’s successful partnership from the Western Flank Oil Fairway of the Cooper Basin where the two companies produce oil from the prolific PEL 91 joint venture, as well as wet gas from PEL 106. This agreement follows an extensive farmout process conducted by Drillsearch to identify an aligned joint venture partner for the permit.
Under the terms of the agreement, Beach will fund 57.9 square miles (150 square kilometers) of recently acquired 3D seismic, and drill an initial exploration well on the Hurron Prospect to earn a 45 percent farmin option. Under the second phase, and should Beach elect to exercise the option, it will drill an additional exploration well and reimburse Drillsearch for past costs in order to earn the 45 percent interest.
Beach will operate the drilling of up to two wells on behalf of Drillsearch who will retain operatorship of the permit. The first well is expected to target potential oil reservoirs in the Eromanga Basin sediments in the Hurron Prospect. Drillsearch currently estimates that the Hurron Prospect offers an unrisked prospective resource potential of between 6.4 million barrels (Low estimate P90) and 48.1 million barrels (High estimate P10) with a best estimate (P50) of 18.7 million barrels. In addition, the company has also identified a deeper Hurron wet gas prospect, with a total unrisked prospective resource potential of between 12.3 billion cubic feet, or Bcf (Low estimate P90) and 52.4 Bcf (High estimate P10) with a best estimate (P50) of 27.9 Bcf.
The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
ATP 924P covers an area of approximately 888 square miles (2,300 square kilometers) in the south west Queensland Cooper Basin, located between the Inland Oil Field to the north, and the Cook/Cuisinier Oil Fields to the south. To date, only three wells have been drilled in the permit. Six prospects and leads are currently mapped in ATP 924P that are potential targets for future exploration. ATP 924P also includes the Marengo South discovery, which has been independently audited by DeGolyer and MacNaughton, with a contingent gas resource of between 5.0 Bcf (Low estimate 1C) and 42.1 Bcf (High estimate 3C) with a best estimate (2C) of 17.5 Bcf.
Drillsearch recently completed acquisition of the first two 3D seismic surveys in the permit: the 57.9 square miles (150 square kilometers) Hurron survey over the Hurron Prospect, and the 48.6 square miles (126 square kilometers) Taj survey over the Hurron North Prospect, identified in the map below. An additional infilling 2D seismic program has commenced and is expected to be completed later this year.
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