AUSTRALIAN Worldwide Exploration Limited is basking on the back of a number of wins that augur well for the future of the Sydney-based company.
AUSTRALIAN Worldwide Exploration Limited is basking on the back of a number of wins that augur well for the future of the Sydney-based company.
The company had embarked on a drilling program that managing director Bruce Phillips said was “make or break” for the future of the Perth Basin.
The gamble appears to have paid off, with AWE earlier this week announcing it had made a wildcat gas discovery on the Beharra Springs gas field production facility, which already has produced more than 70 billion cubic feet of gas.
Wireline logging operations indicated an interpreted 26 metres of gas-saturated sands in the primary objective Wagina Formation sandstones – exceeding the pre-drill expectations.
On Monday, AWE advised that it had entered into an agreement with Mitsui subsidiary Wandoo Petroleum Pty Ltd to explore oil and gas at the Cliff Head-1 exploration well in the Perth Basin.
Under the agreement, Mitsui will fund about 5 per cent of the cost of the drill at WA 286P to earn a 2.5 per cent interest in the permit.
As a result of the Mitsui farmout and earlier transactions with Roc Oil, Arc Energy, Norwest Energy and Voyager Energy, AWE will retain a 27.5 per cent interest in the permit without carrying the costs of the drilling program.
Voyager Energy is seeking a $4 million public listing on September 17 to fund the Cliff Head-1 and Arradale-1 farm-in and other projects it’s involved in. The company already has bought a 40.9 per cent interest in the Nockatunga oil production project in south-west Queensland, providing the company with an initial revenue stream.
AWE’s Beharra Springs discovery comes one month after the company reached an agreement with Phoenix Energy, which increased AWE’s equity in three of its six Perth Basin permits.
