Victoria Petroleum Signs Farmout Deal with Santos on Tomcat Prospect
Victoria Petroleum has executed the PPL 93 Wilpinnie North Block Farmout Agreement with the PPL 93 Joint Venture. The PEL 115 Joint Venture is comprised of Victoria Petroleum NL, Impress Energy Limited and Roma Petroleum NL. Participants in the PPL 93 Joint Venture are Santos Limited (operator), Delhi Petroleum Limited and Origin Energy Resources Limited.
Under the terms of the farmout agreement the PEL 115 Joint Venture is paying 100% of the cost of the drilling of the Tomcat-1 well in the Wilpinnie North Block of PPL 93. In the event Tomcat-1 is declared a commercial oil producer, then the PEL 115 JV will earn a 50% interest in the PPL 93 Wilpinnie North Block from the PPL 93 Joint Venture.
The PPL 93 Joint Venture has an option following the drilling of Tomcat-1 to farmin and earn a 50% interest in that portion of the Tomcat Prospect mapped as present in PEL 115.
The Tomcat Prospect as mapped by Victoria Petroleum N.L. covers an area of 1.8 square kilometers with 63% of the prospect present within the northern portion of PEL 115 and 37% present within the adjoining PPL 93. The Tomcat Prospect is interpreted from seismic data to have the potential to contain recoverable oil in the range of 3.5 million barrels (mean) to 5.6 million barrels P(10), if oil is present.
Tomcat-1 will be drilled 200 meters to the north and up dip of the Wilpinnie-3 well which on an open hole drill stem test of the mid Namur sand interval from 1,480 -1,494 meters measured depth flowed 45 degree API oil to surface on a one half inch choke at an initial rate of 785 barrels of oil per day decreasing to 41 barrels of oil per day and 20 barrels of water per day. Wilpinnie -3 lies in the northern portion of PPL 93 and was drilled in 1993.
Victoria Petroleum interprets that Wilpinnie-3 was drilled close to the oil-water contact of the interpreted Tomcat Prospect closure. Tomcat-1 which has been sited to be up dip to Wilpinnie -3 could test a greater oil column than encountered in Wilpinnie-3, if the seismic interpretation of the Tomcat Prospect is valid.
The Tomcat Prospect is interpreted as a tilted fault block with a stratigraphic component with the crestal culmination at the mid Namur horizon within PEL 115 and up dip and 1.1 kilometers north of Wipinnie-3. Tomcat-1 is planned to be drilled to a total depth of 1,850 meters.
Santos Limited, the operator for the PPL 93 Joint Venture, will drill the Tomcat -1 well for the PEL 115 Joint Venture in late December 2006.
Commenting on the signing of the farmout agreement with the PPL 93 Joint Venture, John Kopcheff, managing director of Victoria Petroleum NL said:
"Victoria Petroleum is pleased to have entered into a farmout agreement with the Santos led PPL 93 Joint Venture to drill the Tomcat-1 well."
"Victoria Petroleum considers Tomcat-1 to have a good chance of success of encountering oil in the target formation. Drilling results from Tomcat-1 and the testing of that well will determine to a large extent how much of the Tomcat Oil Pool may extend into PEL 115."
"Victoria Petroleum looks forward to the late December 2006 drilling of Tomcat-1 in the area situated between the major Dullingari Oil Field to the east and the Della Oil and Gas field to the west."
Following the drilling of Tomcat-1 and subject to the proving of commercial oil production from the Tomcat-1 well, the after farmout interests in Tomcat-1 and the Wilpinnie North Block of PPL-93 will be through the various wholly owned subsidiaries:
Victoria Petroleum NL 20%
Impress Energy NL 20%
Roma Petroleum NL 10%
Santos Limited 33.3% (operator)
Origin Energy Resources Limited 6.595%
Deli Petroleum Pty Ltd 10.105%
In the event that commercial oil production is not obtained from Tomcat-1 the PEL 115 Joint Venture will have earned no interest in the Tomcat -1 well and the Wilpinnie North Block in PPL 93.
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