11 May 2011 07:00
2 May 2011La Rocca-1 well spuds on WA-388-P, Offshore Western Australia
Oilex Ltd advises that the "Ocean Patriot" rig has arrived at the La Rocca-1 well location and the well was spudded at 3:20 hours (WST) on 30 April 2011.
Report date: 1 May 2011 Status: Commenced picking up drill pipe Operations: * Spudded well * Drilled 660mm / 914mm hole from 422 metres to 468 metres. * Ran & set 762mm (30") casing Water depth 401 metres Objectives Intra Mungaroo channel zone Planned total depth Approximately 5,100 metres (TD): Days to TD: 41 days on a trouble free basis
All depths refer to depth below rig rotary table
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.
The La Rocca-1 well, the first exploration well in the permit, will drill the La Rocca prospect in the Intra Mungaroo channel zone. The well is operated by Apache Northwest Pty Ltd ("Apache"), which has had extensive success in exploring this play in the outer North West Shelf.
Farm-in
As previously disclosed, Apache entered a farm-in agreement with the WA-388-P Joint Venture in which Apache will earn a 40% interest in the WA-388-P permit by paying 100% of the well and testing costs (up to agreed caps). Under the farm-in agreement Oilex will farm-out 5.6% of its 14% interest to Apache.
An amendment to the farm-in agreement was subsequently concluded in which Oilex sold its 5.6% farm-out interest to Apache for cash consideration equivalent to the value of being carried through the well and testing under the original farm-in agreement. The amendment does not materially alter Oilex's commercial position under the farm-in agreement.
The farm-in agreement and amendment are subject to Government approval.
The participating interests in the WA-388-P permit after satisfaction of the requirements of the farm- in agreement and amendment, 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 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
oilex@oilex.com.au Ben Clube Finance Director bclube@oillex.com.au
Ambrian Partners Limited (Nominated
Adviser and AIM Broker) Richard Swindells +44 (0) 20 7634 4856 (UK) richard.swindells@ambrian.com Matthew Einhorn +44 (0) 20 7634 4860 (UK) matt.einhorn@ambrian.com Read Corporate +61 (0)8 9388 1474 (Western Australia) Nicholas Read nicholas@readcorporate.com.au Tavistock Communications +44 (0)207 920 3150 (UK)
Paul Youens pyouens@tavistock.co.uk +44 (0)7843 260 623 (UK) Ed Portman: eportman@tavistock.co.uk +44 (0)7791 892 509 (UK)
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.
This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although Oilex Limited believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements."
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