The title transfer for the Ironbark offshore gas prospect off Western Australia to the new BP Development Australia Pty Ltd.-led exploration joint venture has been approved, paving the way for the drilling program, said Melbourne-based Cue Energy Ltd.
The Australian National Offshore Petroleum Titles Administrator (NOPTA) approved the title transfers for permit WA-359-P containing the Ironbark prospect to BP, Beach Energy Ltd. and New Zealand Oil & Gas Ltd. along with the approval and registration of other documentation associated with the formation of a joint venture between the parties, Cue said.
Completion of the agreements is expected in the next few weeks, triggering funding obligations of BP, Beach, and NZOG towards Cue’s well cost, including A$1.54 million reimbursement for Cue’s past costs in identifying the Ironbark prospect.
BP is now operator of WA-359-P after months in the acting role. It will continue with the planning and execution of the Ironbark-1 wildcat which is due to be drilled in late 2020.
Ironbark has a best estimate prospective recoverable gas resource of 15 tcf—three times that of other fields in the region like Scarborough and Wheatstone.
The prospect is in the Carnarvon basin, trending southwest-northeast across three permits with the southwest end about 45 km due north of the Woodside group’s North West Shelf fields.
Ironbark has an aerial extent of 400 sq km. Water depth in the region is 200m-300m. Ironbark-1 will be drilled to a total depth of 5,500 m by Diamond Drilling’s semi-submersible rig Ocean Apex. Cue has previously identified multiple targets in the gas-prone Mungaroo formation.
BP is currently preparing and environmental plan for the well site survey and drilling activities.
On completion of the agreements the WA-359-P joint venture interests will be BP 42.5%, Cue 21.5%, Beach 21%, and NZOG 15%.
