Re: OEX - Oilex
Another press release with lots of esoteric jibberish that I do not understand.
http://www.istockanalyst.com/article/viewnewspaged/articleid/3505529/pageid/2
London, Sep. 25, 2009 (PR Newswire UK Disclose) --
Media Release 25 September 2009
OILEX SECURES DRILLING RIG FOR TWO WELLS IN TIMOR SEA
* Contract signed with Songa Offshore Drilling Limited to secure a drilling
rig for two wells in contract area JPDA 06-103 in the Timor Sea
* Drilling to commence following release of the rig from Woodside's imminent
1 to 3 well program on North West Shelf, WA
* Oilex has funding for these wells under a previously announced Farm-Out
Agreement between Oilex and Japan Energy (OEX retains 10% interest)
* Initial two-well program to drill prospects with combined prospective oil
resources of 285 million barrels (100% basis) adjacent to the recent Kitan
oil discovery (ENI)
Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to advise that it has signed a
contract with Songa Offshore Drilling Limited ("Songa") to secure the services
of the semi-submersible drilling rig "Songa Mercur". The rig will drill two
wells (with the option of one additional well) in the contract area JPDA 06-103
in the Joint Petroleum Development Area ("JPDA") of the Timor Sea.
The drilling contract is the latest in a sequence of recent events that will
culminate in the drilling of two attractive offshore oil prospects in JPDA
06-103 including:
* Oilex farming out part of its interest in this block to Japan Energy E&P
JPDA Pty Ltd, a subsidiary of Japan Energy Corporation - resulting in Oilex
being carried for its 10% share of all costs associated with the first two
commitment wells (up to an agreed cap) and repayment of some of Oilex past
expenditures;
* The term of the Production Sharing Contract (PSC) being extended to 15
January 2011; and
* The selection of the Loré and Lolotoe prospects － with combined prospective
oil resources of 285 million barrels of oil － as the locations for the
first two wells.
Prospects
The portfolio of prospects in JPDA 06-103 comprises over 20 structural
closures. Drilling locations have been selected for the first two wells on
prospects with recoverable mean prospective resources (on 100% basis) of 195
million barrels of oil (Loré) and 90 million barrels of oil (Lolotoe).
ROSPECTIVE RESOURCES - OIL
(probability in million stock tank barrels recoverable)
P90 P50 P10 MEAN
PROSPECT
LORÉ 20 102 515 195
LOLOTOE 14 57 220 90
Figure 1. Range of prospective resources on 100% basis, Lore& Lolotoe
prospects JPDA 06-103
The prospect portfolio was prioritised on the basis of potential resource
volume and technical risk.
While oil is the anticipated hydrocarbon phase based on nearest offset discoveries, the possibility also exists for significant gas condensate finds in the block. Conoco-Phillips' Bayu Undan gas condensate field is located about 40km to the south of JPDA 06-103. JPDA 06-103 lies close to significant recent discoveries and prolific producing fields further to the west along geological trend. ENI's 2008 discovery at Kitan, located in the adjacent PSC to the west of JPDA 06-103, is now under development and wells and fields to the south and west of JPDA 06-103 have demonstrated exceptionally high productivity on testing oil. The Kitan-1 discovery well is reported to have flowed oil at a rate of 6,300 bopd from a drill stem test in the Elang/Plover Formation. The discovery was followed by an appraisal well, Kitan-2, that confirmed its commercial viability. The Maura 3D seismic survey (2,140 km²), in combination with existing 3D seismic data in the block, provides 3D seismic coverage over about 90% of the contract area. The seismic data quality is excellent and the definition of events at the level of the top primary objective － the Elang and Plover Formation reservoirs - allows for interpretation with a higher level of confidence than previously achievable using older seismic data. Prospects were mapped in detail based on the integrated set of new 3D, regional 2D and older, reprocessed 3D seismic data and regional well data. Farm-Out Under the terms of the Farm-Out Agreement, Oilex has agreed to assign 15% of its 25% interest in the block to Japan Energy E&P JPDA Pty Ltd, a subsidiary of Japan Energy Corporation. The consideration payable by Japan Energy is made up of two components: (1) a part refund of past costs incurred by Oilex in relation to JPDA 06-103; and (2) future funding of Oilex's remaining 10% share of the costs for the first two commitment wells up to an agreed cap. Oilex will remain as Operator of the PSC. Rig Contract A drilling contract has been concluded between Songa Offshore Drilling Ltd and Oilex (JPDA 06-103) Ltd on behalf of its Joint Venture for utilization of the semi-submersible drilling rig "Songa Mercur". The contract covers a drilling campaign of two wells and the option of one additional well in the JPDA 06-103 contract area. The drilling rig is scheduled to mobilise for the Oilex Joint Venture, subject to meeting certain contractual requirements, immediately after release from its current contract with Woodside Energy Ltd, anticipated to be in November 2009 on the basis of Woodside's likely schedule of two wells. Figure 2. Location map JPDA 06-103, Timor Sea Figure 3.
Prospects and leads JPDA 06-103(Please refer to Oilex website for full report) The participating interests in the JPDA 06-103 PSC are: Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10% Global Energy Inc 25% GSPC (JPDA) Limited 25% Bharat PetroResources JPDA Limited 25% Japan Energy E&P JPDA Pty Ltd 15% For further information, please contact: Ray Barnes - Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia) Archie Berens - Director, Pelham Public Relations Tel. +44 20 7337 1509 (United Kingdom) Nicholas Read - Read Corporate Tel. +61 8 9388 1474 (Western Australia) The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. (Hons) PhD (Geology) who has over 30 years experience in petroleum geology. The estimates of hydrocarbon resources were reviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG. Mr Barnes reviewed this announcement and consents to the inclusion of the estimated hydrocarbon resources in the form and context in which they appear. The resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007. Further information is available at
www.spe.org. Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing,
stuartl@rfc.com.au END OILEX LTD