Doriemus PLC, London, has signed a binding letter of intent with Rey Resources Ltd., Sydney, to farm in to onshore Canning basin permit EP 487 in northwest Western Australia as well as a separate farmin to nearby Kora West oil field in production license L-15.
Doriemus will obtain a 50% interest plus operatorship over the 5,000-sq-km exploration permit that surrounds the northern town of Derby on the Western Australian coast. It contains the prospective Butler prospect, which Doriemus plans to drill during this year’s third quarter pending an updated assessment by an international oil and gas consultant.
Rey Resources has previously reported Butler to have potential to hold 170 tcf of gas in place with a recoverable gas potential of 28 tcf on a P50 basis along with a possible 700 million bbl of condensate.
Plans are for a 4,000-m well utilizing and incorporating the Fishbones stimulation technology that has been shown to improve well productivity in tight formations.
West Kora field, which lies 20 km east of Derby, has an estimated 380,000 bbl of 2P reserves. Doriemus will have 50% of the license and intends to bring West Kora into production at the end of this year’s first quarter or early in the second quarter depending on the finish of the Kimberley wet season.
The completion of both farmins is conditional on Doriemus fulfilling certain funding and other obligations under the letter of intent and finalization of formal documentation.
The Canning blocks represent Doriemus’ first assets in Australia. The company also has interests in Lidsley oil field in England’s West Sussex area and two permits in the northern Weald basin in Surrey.