Australian energy company WHL Energy Limited has agreed to grant an extension to Tap Oil Ltd for the election date of the seismic option to acquire a 10% interest in exploration permit VIC/P67, offshore, until the close of business 13 February 2015. VIC/P67 lies in the offshore Otway Basin, approximately 200 km WSW of Melbourne, Victoria.
During October 2014, WHL Energy Limited began a farm-out process for VIC/P67 to seek partners through the exploration drilling phase while retaining meaningful exposure to the permit.
A data room was opened and, according to WHL, strong interest was received from a number of pre-qualified companies. WHL Energy has said that it remains in discussions with several companies regarding a potential farmin.
WHL Energy previously identified 14 prospects with total best estimate Prospective Resources of 1,044 Bcf of gas and 31.2 MMbbl of condensate and LPGs in VIC/P67.
The company has said that the strong demand for domestic gas on the east coast of Australia together with the conventional VIC/P67 Prospective Resources may provide a cost competitive gas supply to these markets.
David Rowbottam said: “The extension to the election date of the seismic option provides the best opportunity for a strong joint venture going forward with TAP being a well-funded and capable potential joint venture participant. The Company is also continuing to work through the farm-out process which is expected to carry on through January.”