The Operator, Apache Northwest Pty Ltd (“Apache”) has advised that the Ocean Shield drilling rig is now on location and has commenced drilling of the Bath-1 exploration well located in the TL/2 Production Licence, offshore Carnarvon Basin, Western Australia, for Apache on a sole risk (100%) basis.
Pan Pacific Petroleum NL (“PPP”) has evaluated this opportunity and determined that it does not meet the required risk-reward criteria. PPP, together with the other joint venture partners, has decided not to participate in this well.
Under the TL/2 Joint Operating Agreement, non participating joint venture partners retain the right to participate in a successful discovery subject to back-in penalties. As PPP is not participating in Bath-1, the Company will not be releasing regular drilling reports regarding this well.
Participants in TL/2 are:
Pan Pacific Petroleum NL 23.2%
Apache Oil Australia Pty Ltd (Operator) 51.8%
Santos (BOL) Pty Ltd 15.0%
Tap (Shelfal) Pty Ltd 10.0
Source:Panpacpetroleum, May 24, 2010;