10th Aug 2009 07:00
Media/ASX Release 10 August 2009 Key Condition of Timor Sea Farm Out Satisfied * Oilex's request for extension on PSC term for Timor Sea block has been approved * The extension approval satisfies key condition of recent Farm Out Agreement between Oilex and Japan Energy * Oilex in discussion to secure rig for initial 2 well program targeting combined prospective oil resources of 285 million barrels (100% basis) later this year
Oilex Ltd is pleased to advise that an important approval has been received from the JPDA Designated Authority for an extension to the first term of the Production Sharing Contract (PSC) covering the highly prospective block JPDA 06-103 in the Timor Sea.
The approval of the extension follows the recently announced Farm Out Agreement with Japan Energy E&P JPDA Pty Ltd, a subsidiary of Japan Energy Corporation and fulfils a key condition of that Agreement. Under the terms of that Farm Out Agreement Oilex has agreed to farm down 15% of its 25% interest in the block, reducing its financial obligations while maintaining its exposure to the significant exploration potential. The consideration includes a refund of part of past costs and future funding for Oilex's remaining 10% share of the costs for two commitment wells up to an agreed cap.
The JPDA Designated Authority approved a 1-year extension to Contract Year 3 of the PSC for JPDA 06-103, which previously ended on 15 January 2010 and will now end on 15 January 2011. The extension of the term will allow adequate time to complete drilling programs to evaluate this highly prospective block. Oilex's wholly-owned subsidiary, Oilex (JPDA 06-103) Ltd is the Operator of the PSC.
Oilex is actively working to secure a rig for the initial two-well drilling program targeting a combined oil prospective resource of 285 million barrels (100% basis) with drilling expected to commence later this year.
The participating interests in the JPDA 06-103 PSC upon satisfaction of the remaining conditions of the Farm Out Agreement (as reported on 3 August) will be:
Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10%
Global Energy Inc 25% GSPC (JPDA) Ltd 25%
Bharat PetroResources JPDA Limited 25% Japan Energy E&P JPDA Pty Ltd 15%
For further information, please contact:
Ray Barnes - Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)
Archie Berens - Director Pelham Public Relations Tel. +44 20 7337 1509 (United Kingdom)
Nicholas Read - Read Corporate Tel. +61 8 9388 1474 (Australia)
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. (Hons) PhD (Geology) who has over 29 years experience in petroleum geology. The estimates of hydrocarbons in place were reviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG. Mr Barnes reviewed this announcement and consents to the inclusion of the estimated hydrocarbons in place in the form and context in which they appear. The resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007. Further information is available at www.spe.org.
Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, [email protected]
vendorRelated Shares:
OEX.L