3rd Mar 2011 07:00
3rd March 2011
Operations Update on WA-388-P, Offshore Western Australia
Summary
* Operator proposing exploration well to spud in April 2011 with contracted rig * The well will target the "La Rocca" prospect in the Intra Mungaroo channel zone
Oilex Ltd provides the following operations update for WA-388-P in offshore Western Australia.
Apache Northwest Pty Ltd ("Apache"), the Operator of the WA-388-P permit, has proposed to the Joint Venture to start drilling the first exploration well in WA-388-P in April 2011. The well will target the "La Rocca" prospect in the Intra Mungaroo channel zone. The well had been scheduled to start drilling as early as mid-February but has been delayed due to significant cyclone activity in the North West Shelf area during the first quarter of 2011.
Permit
The WA-388-P permit is located north of the Pluto, Wheatstone, Gorgon and North West Shelf Project 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.
Farm-in
As previously disclosed in November 2010 a farm-in agreement was entered into by the Joint Venture with Apache. Under the farm-in agreement, Oilex farmed out 5.6% of its 14% interest to Apache. Apache will fund 100% of the Joint Venture costs of the first exploration well and, if approved, testing costs (up to agreed caps). The farm-in agreement is subject to Government approval.
The participating interests in the WA-388-P permit after satisfaction of the requirements of the farm in agreement, are set out below.
Joint Venture Party Participating Interest Oilex Ltd 8.4% Apache Northwest Pty Ltd (Operator) 40% Sasol Petroleum Australia Ltd 18% Videocon Industries Ltd 8.4% Gujarat State Petroleum Corporation Ltd 8.4% Bharat PetroResources JPDA Limited 8.4% Hindustan Petroleum Corp. Ltd 8.4%
For further information, please contact:
Oilex Ltd +61 (0)8 9485 3200 (Western Australia) Bruce McCarthy Managing Director [email protected] Ben Clube, Finance Director [email protected] Ambrian Partners Limited (Nominated Adviser and AIM Broker) Richard Swindells +44 (0) 20 7634 4586 (UK) [email protected] Read Corporate +61 (0)8 9388 1474 (Western Australia) Nicholas Read [email protected] Tavistock Communications +44 (0)207 920 3150 (UK) Paul Youens +44 (0)7843 260 623 (UK) [email protected] Jonathan Charles +44 (0)7791 892 509 (UK) [email protected]
Information in this report relating to hydrocarbon reserves or resources has been compiled by Mr Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 37 years experience in petroleum geology and is a member of the AAPG. Mr Barnes consents to the inclusion of the information in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. 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.
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