Apache farms into onshore Canning basin

Apache Energy has signed a binding agreement with Buru Energy Ltd. and Mitsubishi for Apache to farm into the latter two companies’ onshore Canning basin acreage in northwest Western Australia.

The permits predominantly cover the Goldwyer shale, prospective for shale oil and gas as well as for conventional sandstone reservoirs.

Apache will earn a 50% interest in permits 390, 471, and 473 and as much as 50% in permit 438.

The company will fund $25 million (Aus.) worth of exploration programs to be carried out on these coastal permits during 2014. The program includes two exploration wells and a 175-km 2D seismic survey.

Apache will take 25% from each of the Buru and Mitsubishi interest.

In addition Apache has been granted the option of earning up to 40% interest in exploration permits 472, 476, 477, and 478 and as much as 50% interest in 474.

For this the company will pay Buru and Mitsubishi a nonrefundable option fee of either $7.2 million (Aus.) or 80% of the cost of an aerogravity survey to be taken over these inland Acacia permits.

If at the end of the seismic program Apache acquires interest, it will fund 80% of the costs of two exploration wells in the Acacia permits and costs of two appraisal wells if drilled.

Apache will also reimburse Buru for the costs of a recent 5,000 sq km 3D survey over permit 474.

Buru will remain operator of all permits, but when the work programs have been completed Apache will have the option of taking over operatorship duties.

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

OWNERSHIP QUESTIONS CAN STYMIE DEVELOPMENT OF COALBED METHANE

01/01/1990 Although the technology exists for commercial recovery of coalbed methane, production has been hindered because of the legal quandary as to ownersh...

OIL FLOW RISING IN E. CHINA REGION

01/01/1990 Production is building from an oil producing area in the lower reaches of the Yangtze River in eastern China's Jiangsu Province. The northern J...

GAS EXPLORATION FANS OUT MIN ARKOMA BASIN

01/01/1990 Gas exploration is heating up in the South Central Arkoma basin's pre-Pennsylvanian formations. Several operators are targeting Siluro-Devonian...

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