Australia’s Oilex is getting ready to call up a long list of potential farm-in partners after confirming an extension to its Canning basin play, according to managing director Ron Miller.
The extension of the rift basin called Wallal Graben has been confirmed as extending into the company’s SPA 17 AO acreage.
Oilex recently finished interpreting a magnetic survey over the area and confirmed what the company previously thought.
Miller told Upstream that the company was ready to re-start talks with potential farm-in partners.
“We announced we would embark on a farm-out programme because a lot of companies when we were awarded the additional exploration permits which gave us the opportunity to have 100% of the play fairway, started ringing us and saying they’d like to look at the data we had,” he said.
“What we found out is that there were big companies who were interested, companies from North America and Europe were interested." Miller added that the overwhelming message from potential partners was that they wanted confirmation on the extension of the Wallal Graben."
“That meant that we needed to go out and shoot the data and say the theory was right, and that’s what we’ve now done."
“We’ll be back talking to those same companies that expressed real interest… and the list is quite long."
“We were surprised by the number of companies that had made contact with us.”
The company said the extension contained a working petroleum system of source rocks, structure, thick sedimentary section and depth of burial to create hydrocarbons. Oilex now has exclusive rights to negotiate a programme for the play with the Western Australian state government. Agreements with traditional and native landowners to allow work to continue are expected to be signed before the beginning of next year.
OEX Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
