28th Aug 2009 07:00
28 August, 2009
OILEX TIMOR SEA FARMOUT GOES UNCONDITIONAL
Oilex Ltd advises that all conditions precedent for the previously announced agreement to farmout part of its interest in the offshore block JPDA 06-103 in the Timor Sea to Japan Energy E&P JPDA Pty Ltd (Japan Energy) have now been satisfied.
Under the terms of the farmout agreement, Japan Energy, a wholly owned subsidiary of Japan Energy Corporation Ltd, will earn a 15% participating interest in the JPDA 06-103 Production Sharing Contract (PSC) from Oilex. The consideration payable by Japan Energy under the Farmout Agreement includes both a refund of part of past costs, payable now and future funding for Oilex's remaining 10% share of the costs for the first two commitment wells up to an agreed cap. Oilex will remain as Operator of the PSC.
Planning for the initial, two-well drilling program is well advanced and Oilex is currently in negotiation with a preferred contractor to secure a rig to drill the Lore and Lolotoe prospects. These prospects have estimated mean prospective resources (on 100% basis) of 195 million barrels of oil and 90 million barrels of oil respectively. Drilling may commence in fourth Quarter of this year.
The participating interests in the JPDA 06-103 PSC following the farmout areset out in the table below.Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd(Operator) 10% Global EnergyLimited 25% GSPC (JPDA) Ltd 25% Bharat PetroResources JPDA Limited 25% Japan Energy E&P JPDA Pty Ltd 15% Yours sincerely,B. H. McCarthyManaging Director
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)
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 prospective resourceswere 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 estimatedprospective resourcesin 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:
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