Australian oil company Norwest Energy has farmed out more of its stake in the Xanadu prospect in the TP/15 permit in the offshore northern Perth Basin of Western Australia.
Following the farm-out deal signed in September 2016 with Transerv and Triangle Energy, Norwest Energy on Friday said it had executed a binding term-sheet with 3C Group IC Limited, which will contribute 40% of the well costs to earn a 30% interest in the TP/15 permit.
Also, 3C Group will have the right to participate in other wells in all the northern Perth Basin permits Norwest holds interests in on equivalent terms as the TP/15 farm-out.
“The finalization of this farm-out is considered an outstanding achievement for Norwest in the current market and represents a major milestone for Norwest shareholders. Securing this funding for drilling costs has been pivotal in ensuring plans to drill this long-awaited well are finally realized,” Norwest said.
This now means that Norwest will remain the operator of the well with a 25% take, with 3C group owning 30%, Triangle 30% and Transerv 15%. Also, this means that all the well costs will be covered by the partners and none by Norwest.
Following the Xanadu-1 well being drilled, each of the parties will contribute to additional expenditure in proportion to their interests in TP/15, Norwest said on Friday.
TP/15 is in the offshore northern Perth Basin of Western Australia. Norwest said it has advanced plans to drill a well on the Xanadu prospect, located at the southern end of TP/15, and holding an un-risked recoverable resource of 160 MMbbls.
The timing of Xanadu-1 will be dependent upon regulatory approvals and rig availability, however, Norwest is currently working closely with rig companies and other operators planning wells in 2017 to ensure the well can be drilled as efficiently and cost-effectively as possible, the company said.
Offshore Energy Today Staff