ConocoPhillips has committed to its $109.5 million farmin to Perth-based New Standard Energy Ltd.’s Goldwyer shale project in the onshore Canning basin of Western Australia.
ConocoPhillips will earn up to 75% in the play by funding four phases in the exploration program. This includes three wells in 2012.
The company also will be required to fund 100% of the cost of complete detailed core analysis and undertake formation evaluation tests in the wells as part of Phase 1.
Analysis of the results from Phase 1 will determine the program design for the next three phases.
ConocoPhillips has the right to withdraw following completion of each phase.
New Standard Energy will continue as operator during the Phase 1 drilling and ConocoPhillips has the option to assume operatorship of the following stages.
The Goldwyer shale acreage covers 37,000 sq km and is said potentially to compare favourably with successful shale plays in the US and Canada.