Apache Northwest Pty Ltd and JX Nippon Oil & Gas Exploration (Australia) today signed farm-in agreements with Carnarvon Petroleum Limited and Joint Venture partner, Finder Exploration Pty Ltd to acquire interests in exploration permits offshore Western Australia.
The permits WA-435-P and WA-437-P hold Phoenix South and Roc prospects, respectively. According to Carnarvon and Finder evaluations, both the prospects have the potential to contain multi Tcf. of recoverable gas and significant associated volumes of liquids. The prospects are located near the Phoenix-1 gas discovery.
Adrian Cook, Carnarvon CEO and Managing Director was happy to welcome new partners to the JV: “Carnarvon is pleased to welcome Apache and JX Nippon to the Joint Venture and is looking forward to working with the other Joint Venture participants in realising the potential in these permits. This is an exciting time for Carnarvon and its shareholders given the resource potential of both the Phoenix South and Roc prospects.”
Following the execution of the farm-in agreements, Apache will take over operatorship of the two blocks with a 40 per cent interest, while Carnarvon, Finder and JX Nippon will own a 20 per cent stake each.
Phoenix and Roc prospects will both target gas in lower Triassic reservoirs, but Carnarvon also expressed belief that the area has the potential to hold significant oil reserves. Carnarvon said that approximately 25 new exploration wells will be drilled in the next five years in this region.
Offshore Energy Today Staff, October 18, 2012