Hess hikes Beetaloo basin spending commitment

Hess Corp. has deployed two seismic crews in central Australia’s Beetaloo basin and has increased its planned capital expenditure to $57.5 million from $40 million, said Falcon Oil & Gas Ltd., Dublin.

Hess shot 470 line-km of 2D seismic in 2011 and 630 line-km so far in 2012 and is on track to complete the entire planned 3,600 line-km on EPs 76, 98, and 117 by the end of 2012, Falcon said.

Hess has until June 30, 2013, to commit to the drilling of five exploratory wells to earn a 62.5% interest in the three permits. This is a revised date agreed with Falcon that will allow Hess adequate time to complete the acquisition and processing of the 2D seismic.

Should Hess commit to the drilling, Falcon’s interest will reduce to 37.5%, but Falcon will be fully carried through the drilling of the five wells. Should Hess elect to proceed to the “development phase,” Hess has agreed to carry Falcon on the first development well up to a gross cost of $10 million (US).

The additional carry and later drilling election date depend on obtaining regulatory approval to extend the permits until Dec. 31, 2013.

Falcon retains 100% of EP99 and the 100,000 acres surrounding the Shenandoah well area, a well completed and tested in 2011. The Company has received expressions of interest from a number of third parties regarding a farmout on the combined 670,000 acre area.

Related Articles

Beach Energy extends success in Cooper western flank

03/31/2014 Beach Energy Ltd., Adelaide, has extended its successful run of oil discoveries in the western flank Cooper-Eromanga basin play in South Australia ...

White House eyes steps to curb oil, gas methane emissions

03/29/2014 The White House announced additional steps to reduce methane emissions from oil and gas operations as part of a broader strategy. They included reg...

Tullow advances Kenya exploration program

03/28/2014 Tullow Oil PLC has moved forward with exploration and appraisal activities conducted by four rigs operating on Blocks 10BB and 13T onshore Kenya.

Lundin completes appraisal wells for Johan Sverdrup

03/28/2014 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, has completed Johan Sverdrup appraisal wells 16/3-8 S and 16/3-8 S T2 in the ea...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected