Oilex Ltd announces that the WA-388-P Joint Venture has entered into a farm in agreement with Apache Northwest Pty Ltd (“Apache”). The WA-388-P permit is located north of the Pluto, Wheatstone, Gorgon & North West Shelf fields, offshore Western Australia.
The WA-388-P permit contains a portfolio of play types and seven prospects have been identified ranging in potential size from 0.3 to 2.8 trillion cubic feet (TCF) of prospective gas resource (recoverable best estimate, 100% basis). Seismic amplitude anomalies evident in the 3D seismic data are likely Direct Hydrocarbon Indicators, suggesting the presence of gas by analogy with nearby fields and discoveries.
Apache will obtain a 40% interest in the WA-388-P permit by paying:
• 100% of the first exploration well (up to an agreed cap); and
• 100% of the well test costs (up to an agreed cap) if the Joint Venture approves testing the well.
Apache will replace Oilex as the permit operator. Apache has contracted the Stena Clyde drilling rig to drill the first exploration well. The well will target a prospect in the Intra Mungaroo channel zone and is expected to spud in early 2011.
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Source:Oilex , November 22, 2010;