AWE Ltd., Sydbey, has decided to pull out of Perth-based junior WHL Energy Ltd.’s offshore Otway Basin permit Vic-P67 after a series of time extensions for deciding about moving to the exploration drilling phase in the permit.
It is understood the significant drop in world oil prices is behind the withdrawal. AWE has no further claim against recovered costs.
WHL still believes the permit has excellent value. The company has identified 14 prospects with a total potential of 1 tcf of gas and 31 million bbl of condensate and LPG following its 3D survey earlier this year.
The permit also contains the La Bella gas discovery made a number of years ago by BHP Petroleum, now BHP Billiton Ltd.
WHL began farm-out negotiations in October this year.
Another potential partner, fellow Perth company Tap Oil Ltd. has an option to acquire an initial 10% interest in the permit, for which it will pay $3.6 million (Aus.) as a first commitment.
