PetroSun Completes Initial Funding for EP 417 Farmin
PetroSun has completed the initial funding requirements of the EP 417 Farmin Agreement with New Standard Exploration NL of West Perth, Western Australia. The financial terms included a cash payment of one hundred fifty thousand dollars US to New Standard NL for a farmin deposit and costs related to the heritage survey. PetroSun will be assigned a 75% working interest in the Canning Basin permit as the sole funder of the drilling, testing and completion costs of the initial two test wells. PetroSun will be responsible for seventy-five percent and New Standard NL twenty-five percent of the costs on all subsequent wells drilled on the permit.
The EP 417 contains numerous seismic generated geological features including the Lanagan, Lawford and Spinifex prospects that PetroSun will test during Phase Two of the Farmin Agreement. The initial test well will be drilled on the Lanagan A Prospect during 2007 to a total depth of 2,500 meters. The Lanagan A has been selected for the initial test based on clear four way dip, distance from the reactivated Lake Betty fault zone and it has the highest closure at the base of the Grant unconformity. The Lanagan A Prospect covers 10,000 acres and contains potential recoverable oil reserves in excess of 50 million barrels. Based on $60 crude oil, the potential gross economic value of the Lanagan A would approximate $3 billion.
The seismic closure known as the Spinifex Prospect has potential recoverable oil reserves in excess of 100 million barrels within its 20,000 acre boundary. The 40,000-acre Lawford Prospect is also graded at 100 million barrels plus of potential recoverable crude oil. There are many other structural highs contained within EP 417, though not as large and appear to be less complex than the Spinifex and Lawford. The Spinifex and Lawford Prospects are schedule to be tested during 2008, subject to the development of the Lanagan.
PetroSun has been designated as the Manager/Operator of Exploration Permit 417. The permit area contains 6,300 square kilometers or approximately 1.5 million acres. The net revenue interest to the working interest owners approximates ninety percent, with the government retaining the balance as a royalty interest.
- Templin Heads PetroSun's E&D Program (Jan 23)
- PetroSun Names New VP of Exploration & Development (Nov 27)
- Arc Acquires Interests in Canning Basin Blocks (Sep 17)