Vicpet farmin agreement with Santos
Posted: 18 October 2007
Victoria Petroleum has executed the formal Cooper-Eromanga permit ATP 752P farmin agreement with Santos Ltd and Avery Resources (Australia) Pty Ltd.
The farmin earning program consists of up to 7 oil exploration wells and a minimum of 300 square kilometres of 3D seismic data to be carried out in the Wompi and Barta blocks which make up ATP 752P.
Vicpet will be fully carried for the 7 wells and all new seismic data acquired under the staged farm-in arrangements and retain 15% working interest on completion of the farmin.
The Barta and Wompi Blocks are adjacent to lands held by Santos which are the subject of an accelerated exploration and development program being undertaken as part of the Santos Cooper Oil Project.
The highlights of the Avery/Santos ATP 752P farmin are as follows:
4 oil exploration wells
Minimum 200 square kms 3D Seismic
3 oil exploration wells
Minimum 100 square kms 3D Seismic
Total estimated capital expenditure: $18.5 million
Any other work including additional seismic carried out during the farmin period will be at the expense of the farminees.
The farmin program is to be completed prior to the end of February 2009.
Santos will take over as operator of ATP 752P and plans to drill the initial two firm farmin wells (one in each block) starting in the first quarter of 2008 and has indicated it would prefer to drill two wells in each block (potential total of four initial wells prior to end of the first half of 2008) while the drill rigs are in the area.
Drilling of the two extra wells will be conditional on a Santos internal technical review of the current Joint Ventures recently acquired 2D and 3D seismic acquisition and reprocessed seismic data in the permit.
The farmin program also reduces Vicpet’s exploration risk and cost in its ATP 752P Cooper Basin oil exploration program through the drilling of more exploration wells, access to large 3D programs along with Santos expertise in all disciplines and the Santos proven track record of finding and developing commercial discoveries in the Cooper Basin.
"Vicpet is very pleased that ATP752P has attracted the interest of Santos resulting in an increased drilling program for the permit," said John Kopcheff, Victoria Petroleum managing director.
"With Santos as the operator, Vicpet can see significant advantages both technically and logistically with the permit and associated exploration drilling being part of the Cooper Oil Project.
"In the event of exploration success, Vicpet can see these advantages carrying through to the development and early production of oil from any discoveries made.
"The drilling program of up to 7 wells set out in the farmin agreement is part of Vicpet’s strategy of being a major explorer in the Cooper/Eromanga Basin in South Australia and Queensland.
This drilling complements Vicpet’s exploration and drilling program in South Australia in PEL 115 and the PEL 104 /111 Western Margin Oil Project where the Growler Oil Field will commence production in December 2007.
"The experience gained in ATP 752P will be of value to Vicpet in its development as the operator of a similar style Cooper Oil Project for the Jurassic Oil Fairway being explored and developed in Vicpet’s Cooper Basin Western Margin Oil Project permits in South Australia."