BP extends option to farm into Ironbark permit off Western Australia

Cue Energy Resources Ltd., Melbourne, has agreed to extend BP PLC’s option to farm into 42.5% equity of offshore Carnarvon basin exploration permit WA-359-P from the end of May till Oct. 25.

Cue Energy Resources Ltd., Melbourne, has agreed to extend BP PLC’s option to farm into 42.5% equity of offshore Carnarvon basin exploration permit WA-359-P from the end of May till Oct. 25.

The permit contains part of the prospective Ironbark prospect. If BP exercises the option, it will fund 50% of a wildcat well scheduled for drilling in 2018.

Cue also is seeking an additional partner to join the WA-359-P joint venture and help fund the well.

A data room has been opened and the extra 6 months for BP’s decision will enable other interested parties to incorporate into their analyses the results of 3D seismic reprocessing that is currently under way.

Ironbark is a large Mungaroo formation prospect that has a mapped area of 400 sq km. It has the potential to hold 15 tcf of recoverable gas.

The prospect straddles the boundary between permits WA-359-P and WA-409-P and lies just 50 km from the North West Shelf venture’s North Rankin platform. It is also close to both Pluto and Wheatstone fields’ systems.

BP has already farmed into 80% equity in WA-409-P and agreed to fund 100% of the work program required in this permit.

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