Drilling to start in a week. This is a very interesting prospect, close to existing discoveries and benefits from the seismic association with existing discoveries.
"VIC/P45, GIPPSLAND BASIN (MOG 50% reducing to 16.666%)
The Vic/P45 Joint Venture consists of: Apache Northwest Pty Ltd 66.67% and Operator Moby Oil & Gas Limited 16.66% Exoil Limited 16.67%
Apache Northwest Pty Ltd, as Operator and Farminee, plans to drill Coelacanth as the second well in the upcoming drilling round. The Coelacanth location was selected by Apache, drawing upon the existing modern, 1,100 km² high quality 3D seismic survey that covers most of Vic/P45.
The Coelacanth well is scheduled to spud, using Seadrill’s West Triton jacking rig, on or about 6th March 2008 and is expected to take 16 days to drill, in a dry hole case.
There are three oil target zones in Coelecanth well; the Top Latrobe, the Top Volador and Intra-Volador. Apache’s assessed potential recoverable hydrocarbons on a success case range from 74.84 million barrels of oil in a P10 case to 5.85 million barrels in a P90 case, with a mean of 31.99 million barrels.
Apache will meet 100% of the costs of Coelacanth and 100% of the costs of the second well to be drilled in Vic/P45, provided that Apache may withdraw from this commitment after drilling the first well by reconveying the whole of farmout interest (66.6668%) to Moby and Exoil. Any discovery location, as defined in the Petroleum (Submerged Lands) Act shall, at Apache’s discretion, be excised from any such reconveyance (should there be one).
MOG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
