Spirit Energy Limited announced Friday that it has reached an agreement with its joint venture partners in the Babbage field to take on operatorship of the license, where it holds a 13 percent interest.

The company revealed that it will also take on operatorship of the nearby Cobra discovery, where it holds a 50 percent interest, and said in a company statement that it plans to drill an exploration well at the adjacent Python prospect in the area next year “to further prove up reserves in the region”.

Transfer of operatorship is subject to securing relevant regulatory approvals and the completion of the divestment of Premier Oil’s 47 percent interest in Babbage and 50 percent interest in the Cobra license to Verus Petroleum, Spirit Energy said.

“Becoming operator at Babbage is an excellent adjustment to Spirit Energy’s portfolio. It is an asset and an area we know well and we are looking forward to working with our partners to maximize the value of the field,” Chris Cox, chief executive of Spirit Energy, said in a company statement.

“With an exploration well at the nearby Python prospect to come in Q2 2019, we see significant opportunities to build on the Greater Babbage Area and boost production further from a field which is expected to produce gas for many years to come,” he added.

Babbage, which first came on stream in 2010, has a year-to-date 2018 average production of around 5,600 barrels of oil equivalent per day, according to Spirit Energy.

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